Construction loans are typically drawn down in 5 to 6 stages: slab or base, frame, lock-up, fit-out, and completion. At each stage, your builder invoices for the work completed, your lender sends a valuer to confirm the work, and then releases the funds. In Adelaide, a typical new build takes 6 to 12 months.
During construction, you only pay interest on the amount drawn down - not the full loan. So if your total loan is $500,000 but only $100,000 has been drawn, you pay interest on $100,000. Once the build is complete, the loan converts to a standard home loan with full principal and interest repayments. Lendology compares 60+ lenders to find construction loan products with competitive rates and flexible drawdown terms.
To apply for a construction loan, you will need: a fixed-price building contract with a licensed builder, council-approved plans and specifications, evidence of your deposit (typically 10-20% of the total land plus build cost), and standard income documentation. If you already own the land, its equity can count toward your deposit.
Not all lenders handle construction loans well - some have slow drawdown processes that frustrate builders, while others are more efficient. Lendology knows which lenders are builder-friendly in Adelaide and can recommend the right fit for your project, whether it is a house-and-land package, a custom build, or a major renovation.
Jason and Steve are Adelaide mortgage brokers who give honest advice at no cost to you. No obligation.
The information on this page is general in nature and does not constitute financial advice. Given Finance Pty Ltd (t/a Lendology) ACN 624 144 501 is authorised under LMG Broker Services Pty Ltd ACL 517192.