Whether you're building on a block you already own, buying a house and land package, or knocking down and rebuilding, a construction loan pays your builder in stages as your home goes up. We help Perth clients build all the time, and we know the process inside out.
How a construction loan works
Instead of paying the full amount up front, the lender releases money to your builder at each stage of the build. You usually only pay interest on the amount drawn so far, which keeps repayments lower while you build. Typical stages are:
- Deposit. Paid when you sign the building contract.
- Slab or base. The foundations are laid.
- Frame. The walls and roof frame go up.
- Lock-up. External walls, windows and doors are in.
- Fit-out. Internal fixtures, cabinets and fittings are installed.
- Practical completion. Final inspection and handover of your new home.
When your builder issues an invoice for each stage, we lodge the claim with your lender and follow it up, so your builder is paid on time and your build keeps moving.
What we can help you build
- A new home on land you already own
- House and land packages
- Knock-down rebuilds
- Granny flats, extensions and major renovations
- Duplexes and investment builds
What you'll need
- A signed fixed-price building contract
- Plans and specifications from your builder
- Council or building approval
- Your builder's Home Indemnity Insurance certificate
- Quotes for anything not included in the contract, like landscaping or driveways
Tips for building in Perth
Build times in WA can run longer than expected, so it pays to plan ahead. Allow a buffer in your budget for variations and site costs, make sure you understand what your contract does and doesn't include, and check how long your lender allows for the build to finish. If you're a first home buyer, the First Home Owner Grant and stamp duty concessions on vacant land can make a big difference. See what's available.
For a full walk-through, download our borrower's guide to construction loans.