Construction Loans
House & Land Builds
Building a home is exciting, but the financing behind it is very different to a standard purchase. With multiple stages, shifting timelines, government schemes, and lender-specific quirks, construction loans require careful planning and experienced guidance from the outset.
At Visionary Finance, we support clients through the full construction journey, from early planning through to completion, helping you understand what’s required, what to expect, and how to avoid costly surprises along the way.
Strong construction outcomes start well before contracts are signed.
Early planning & preparation
We begin by reviewing your current financial position, deposit availability, and readiness for a construction loan. From there, we help you:
Calculate borrowing capacity
Assess eligibility for government schemes and grants
Provide guidance on improving readiness to strengthen approval chances
Issue a Letter of Eligibility (LOE) to assist in securing land with developers
Liaise with real estate agents and solicitors to ensure contract timeframes are met
At this stage, we often order multiple valuations to understand lender options and ensure eligibility for relevant government schemes.
We also take care to:
Negotiate interest rate discounts where possible
Limit the number of applications to protect your credit record
Match your circumstances with lender policies that best suit your situation
Not all lenders treat construction loans the same. Some split land and build loans, others combine them. Some require land to be registered before going unconditional, while others treat savings and expenses differently. Our role is to navigate these differences on your behalf and place you with the right lender from the start.
Application & approval
Once a direction is agreed, we manage the application process end-to-end.
This includes:
Managing all documentation, including government schemes and grants
Providing clear instructions on what documents and deposit funds are required, when they’re needed, and why
Liaising directly with the bank and advocating for approval
Keeping you updated throughout the process, with as much or as little communication as you prefer
Our focus is on clarity and momentum, without unnecessary back-and-forth.
Preparing for land settlement
As land settlement approaches, we help you understand exactly what’s coming next.
This includes:
Reviewing post-contract variations and their impact on your loan
Liaising with your solicitor regarding shortfall funds
Providing clear calculations of expected land settlement costs
Explaining what happens once construction begins, including who pays what and when
You’ll know what to expect before each milestone, not after.
During construction
Once construction is underway, we continue to guide you through each stage.
We help by:
Explaining your financial contributions at each stage of the build
Providing estimates of monthly construction loan interest as the loan progresses
Managing progress payments and ensuring they’re made on time
Coordinating with lenders and managing builder expectations
This support helps keep the build moving smoothly and reduces unnecessary stress.
Completion & review
As construction nears completion, we review whether your loan is still appropriate for your finished home.
This may include:
Ordering a fresh valuation to reflect the completed build
Reviewing interest rates and negotiating improvements where possible
Assisting with access to additional funds for final finishing touches if required
Our role doesn’t stop at handover. We make sure your loan structure still works once the dust settles.
Six-Step Framework
For a construction loan
Getting Ready
01
We review your financial position, deposit, and borrowing capacity, assess eligibility for grants and government schemes, and help you strengthen your readiness before any contracts are signed.
Structure
02
We issue a Letter of Eligibility where required, liaise with agents and solicitors to meet contract timeframes, and match you with the most suitable lender and loan structure for your build.
Approvals
03
We manage the full application process, including valuations, documentation, and government schemes, while limiting unnecessary credit checks and advocating for approval with the lender.
Settlement Preparation
04
Ahead of land settlement, we explain costs, shortfalls, and post-contract variations, so you know exactly what to expect before construction begins.
05
Support
As construction progresses, we guide you through each stage, manage progress payments, estimate interest costs, and coordinate with lenders and builders to keep things moving.
Completion Review
06
Once the build is near completion, we review your loan, order updated valuations where needed, negotiate rates, and help with any final funding adjustments.
Construction Loans FAQs
A construction loan is designed to finance the construction of a home and is disbursed in stages as construction progresses, rather than as a single lump sum. Interest is typically charged only on the amount drawn down at each stage.
What is a construction loan, and how is it different to a standard home loan?
As early as possible. Many important decisions, including borrowing capacity, contract structure, deposits, and grant eligibility, are best addressed before signing land or build contracts.
When should I speak to a broker about a construction loan?
Can you help me understand if I’m eligible for government schemes or grants?
Yes. We assess eligibility for relevant government schemes early in the process and help ensure your loan structure aligns with those requirements.
No. Lenders have different policies around land and build loans, approvals, savings requirements, and expense treatment. Part of our role is matching your situation with a lender whose policies suit your circumstances.
Do all lenders treat construction loans the same way?
Often, yes. Valuations may be required at different stages to confirm lender options, eligibility for schemes, and progress payments. We manage this process and explain what’s required at each stage.
Will I need multiple valuations during the build?
Funds are released to the builder in stages as construction milestones are met and builder invoices are issued. We help manage this process, ensuring payments are made on time and expectations are clear.
How do progress payments work during construction?
During construction, repayments are typically interest-only on the amount drawn down. We help estimate likely interest costs as the loan progresses, so there are no surprises.
What will my repayments look like during construction?
Yes. As the build nears completion, we review the loan structure, order updated valuations where appropriate, and assess whether improvements to rates or structure can be made.
Can my loan be reviewed once construction is complete?
Let’s talk!
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