Build Your Dream Home.
Without the Headache.
Construction loans work differently to regular home loans - and getting it wrong mid-build can cost tens of thousands. Broker360 compares 40+ lenders, manages every drawdown stage, and makes sure you don't miss a dollar in grants.
Free assessment No obligation No credit impact Paid by the lender, not you
in one application
you access
eligible buyers
verified clients
Why Build
Building New Has Real Financial Advantages
Buying established isn't your only path. Building new opens grants, concessions and design freedom that existing homes simply can't offer.
Stamp duty is calculated on the land price - not the finished home. That single difference saves you $15,000–$30,000 over buying established.
Save $15K–$30KBuilding new unlocks grants unavailable to established home buyers. The First Home Guarantee alone can eliminate LMI costs entirely.
Eligible builds onlyEvery room, finish and floor plan chosen by you. No compromises. No expensive renovations six months after moving in.
Your designNew homes come with builder warranties and modern systems. Unlikely to face surprise plumbing or electrical bills for years.
Peace of mindNew builds typically attract higher rental yields and significant depreciation benefits. Construction loans are now exempt from APRA's DTI limits.
For investorsAlready own land? A knock-down rebuild means you can build the home you want without leaving the community you've already chosen.
Knock-down rebuildHow It Works
Construction Loans, Explained Simply
A construction loan is not a regular home loan. Understanding the difference is the first step to a smooth build.
Instead of receiving the full loan upfront, your lender releases funds in stages as your home is built. You only pay interest on what's been released - not the full loan. This keeps repayments lower while construction is underway.
Before the first brick is laid, your builder requires a deposit. We ensure this aligns correctly with your drawdown schedule - no cashflow surprises.
Your concrete slab is measured and poured with plumbing connections. Your lender confirms completion before releasing funds.
Walls, roof structure, trusses and conduits in place. An independent valuation confirms progress before the next release.
Exterior walls, windows, doors and roofing complete. The property can be locked - internal trades can begin.
Kitchen, bathrooms, flooring, plastering and fittings installed. Interest payments increase as more of the loan is drawn.
Final inspection passed, certificate of occupancy issued. Last payment released. You receive the keys to your new home.
Once building is complete, your construction loan converts to a standard home loan. Repayments shift from interest-only to principal and interest. No refinancing required.
Live Calculator
Calculate Your Construction Loan
Get a real-time picture of your repayments, total interest costs and eligible grants - adjust the sliders and results update instantly.
Grants & Schemes
Don't Build Without Claiming Your Grants First
Thousands of Australians leave government money unclaimed - simply because no one told them they were eligible. We audit your entitlements before we submit anything.
Build with just 5% deposit and zero Lenders Mortgage Insurance. No income cap. No placement cap. For first home buyers and those who haven't owned property in 10+ years.
Contracts before June 2026. Under $750K. One of Australia's most generous grants currently available.
New builds under $750K. Combined with significant stamp duty concessions for first home buyers.
Plus up to $34,270 in stamp duty savings. Combined value can be substantial.
No property value cap - attractive for higher-value builds in the Adelaide market.
Up to $1M value cap in regional WA. Applies to new builds only.
ACT, NT and TAS all have grant and concession programs. We check your entitlements regardless of where you're building.
When you build, stamp duty is calculated on the land price only - not the finished home. On a $350K block with a $500K build, you pay duty on $350K instead of $850K. That can save $10,000–$30,000 depending on your state.
Grant amounts and eligibility criteria change regularly. The above is accurate as at early 2026 and subject to change. Verify at firsthome.gov.au - or let us check for you as part of your free assessment.
Eligibility
Do You Qualify?
Most Australians planning to build will qualify. Here's what lenders look for - and how we help when your situation isn't straightforward.
As little as 5% with the First Home Guarantee. Standard builds require 10–20%. Existing land equity can replace a cash deposit entirely.
PAYG or self-employed income both qualify. Borrowing capacity is based on income, expenses and existing debts. We model this for you in advance.
A clean record helps, but we work with lenders who consider applications with previous defaults depending on circumstances. Always worth checking first.
Most lenders require a registered builder with a fixed-price HIA or MBA contract and valid insurance. We guide you on exactly what your builder needs to provide.
Plans must be council-approved before the loan settles. Your builder or architect typically manages this - we liaise with them on your behalf.
- Build with 5% deposit via the First Home Guarantee - no LMI required
- Access First Home Owner Grants up to $30,000 depending on your state
- Pay stamp duty on land only - not the finished home value
- Construction loans are exempt from APRA's DTI limits from Feb 2026 - a genuine borrowing advantage
- We handle all grant applications as part of our standard service
- Equity in your existing home can replace a cash deposit entirely
- Stay in your suburb and build the home you actually want
- We structure your loan to manage cashflow during the transition - particularly if renting while building
- We help time your current home's sale against construction milestones
- New builds offer superior depreciation benefits over established properties
- Interest-only construction period supports cashflow during the build
- From Feb 2026, construction loans are exempt from APRA's DTI caps - broader borrowing capacity
- We compare investment-focused structures across 40+ lenders
- Very few lenders offer owner-builder loans - we know exactly who they are
- Expect 30–40% deposit and rates 1–2% above standard builds
- You'll need to document construction experience and submit detailed cost schedules
- We prepare the application so it presents your case as strongly as possible
Why Broker360
Construction Lending Is All We Do
Most mortgage brokers handle one or two construction loans a year - on top of everything else. We don't operate that way.
"Construction finance is one of the most complex lending products in Australia. You need a broker who does it every single day - not one who's figuring it out alongside you."
Going directly to your bank gives you one option. We give you 40+. We know which lenders approve acreage builds, who has the fastest drawdown process, and who offers the most competitive rates for your specific build type. Right lender, right structure, from day one.
Once approved, we coordinate progress payments, track builder invoices, liaise with your lender, and make sure funds are released on time. You get regular updates. You never have to chase anyone. Most clients say this is what they valued most.
Many borrowers walk away from thousands in grants simply because no one told them they were eligible. We audit your full entitlements before submitting anything. In some cases this saves clients $30,000–$50,000 before the slab is poured.
A bank decline is not the end of the road. Different lenders have completely different assessment criteria. We've helped clients who were rejected by their bank get approved - sometimes with a better rate and more flexible structure.
Broker360 is paid by the lender, not by you. Assessment, lender comparison, application, grant management and drawdown coordination - all provided at no charge. No hidden fees. No fine print.
What to Know
The Costs Nobody Tells You About
We believe in being upfront. Construction loans carry genuine complexity - the clients who fare best understand the risks before they start.
Some lenders charge $150–$400 per drawdown - up to 6 times over the build.
$300–$600 per stage before funds are released - rarely disclosed upfront.
Sloping land or difficult soil can silently add $10,000–$80,000 to your build.
Paying rent or an existing mortgage AND construction interest simultaneously.
Changes after approval require re-assessment - causing delays and funding gaps.
We factor all fees into our lender comparison - not just the headline rate.
We arrange and track valuations so they never hold up your build schedule.
We review soil and site reports before submission to ensure the amount is realistic.
We map your repayments month by month - during and after the build.
Pools, driveways, fencing - included before approval avoids costly variations later.
An 18-month build at 6% on a $450,000 loan costs roughly $40,500 in interest alone - on top of any rent. We build the realistic timeline and a 5–10% contingency buffer into your financial plan from day one.
FAQ
Questions, Answered Honestly
A construction loan releases funds in stages as your home is built - called progressive drawdowns. You only pay interest on the funds released, not the full loan amount. This keeps repayments lower during construction. Once building is complete, the loan converts automatically to a standard home loan with principal and interest repayments.
For a standard house-and-land package, between 5% and 20%. First home buyers can qualify for as little as 5% through the First Home Guarantee - and avoid LMI entirely. Existing land or property equity can replace a cash deposit. Owner-builder loans typically require 30–40%.
Yes - and building new often gives first home buyers more advantages than buying established. The First Home Guarantee (5% deposit, no LMI), state-based grants up to $30,000, and stamp duty on land only can combine to save $30,000–$60,000+ compared to buying established. We handle all grant applications as part of our service.
As at early 2026, rates for standard house-and-land packages range from approximately 5.34% to 5.68% per annum. Owner-builder and non-standard builds typically attract rates 1–2% higher. Rates differ significantly between lenders - which is exactly why comparing 40+ options matters. Contact us for a current comparison for your build.
Prevention is everything. We help you use a fixed-price contract, build in a 5–10% contingency buffer, and include extras in your loan from the start. If your builder issues a variation beyond the approved amount, you'll need to fund the difference in cash or re-apply - which is why we structure correctly from the beginning.
Often yes. A bank decline is not the final word. Each lender has different construction loan criteria - non-bank lenders in particular can be significantly more flexible. We've helped clients turned down by their bank get approved with a better rate and structure. Tell us your situation and we'll be straight with you about your options.
Yes. From February 2026, APRA's debt-to-income limits explicitly exempt construction loans. This gives people building new homes a genuine borrowing advantage over buyers of established property. The 3% serviceability buffer still applies, but the DTI cap does not. If you've been told your borrowing capacity is limited, this exemption may change your situation.
No. Broker360 is paid by the lender - not by you. Assessment, lender comparison, application, grant coordination and drawdown support are all provided at no cost. No hidden fees, no adviser charges, no obligation. We're required by Australian credit law to act in your best interest, not in the interest of any particular lender.
Ready When You Are
Let's Get Your Build Financed Correctly
A 20-minute conversation costs you nothing. You'll leave knowing your borrowing power,
your grant entitlements, and a realistic picture of what your build will cost -
before you're committed to anything.
Our service is paid by the lender. Not by you.
This page is for general information only and does not constitute financial or credit advice. Your full financial situation should be reviewed prior to accepting any product. Credit is subject to approval. Fees, charges, terms and conditions apply. Broker360 ABN 27 697 785 489. Grant amounts accurate as at early 2026 and subject to change - verify at firsthome.gov.au.