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Construction loans Adelaide

Build your home
the right way.

Lendology manages your construction loan from first draw to final inspection - with lenders who understand the build process and don't create unnecessary delays.

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Last reviewed: April 2026
Home›Home Loans›Construction loans Adelaide
How construction finance works

Progress draws, inspections and what to expect at each stage

A construction loan works differently to a standard home loan. Funds are released in stages as your builder completes each phase - you only pay interest on the amount drawn, not the full loan. Lendology manages the draw process, liaises with your builder and ensures inspections happen on schedule.

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Builder registration - Lendology confirms your builder is registered and the building contract is structured to satisfy lender requirements before lodging your application.
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Fixed price contract - Most lenders require a fixed price contract. Lendology reviews your building contract and identifies any terms that may create issues with lender approval.
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Valuation process - Construction lenders require progressive valuations at each draw stage. We work with lenders who have efficient valuation processes to minimise delays for your builder.
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Post-construction rate review - Once your home is complete, we review the end rate against the full market - construction period rates are not always the most competitive long-term.
How it works

The Lendology process

1
Loan structure and lender selection
We identify lenders with strong construction track records - responsive valuation teams, efficient draw management and minimal delays for your builder.
2
Land settlement (if applicable)
If you are purchasing land separately, we coordinate the land loan settlement first, then supplement with your construction loan when the build commences.
3
Progress draw management
As your builder completes each construction stage, we arrange the progress payment - coordinating with the lender's valuation team at each draw to minimise delays.
4
Conversion to standard loan
Once construction is complete and the occupation certificate is issued, we convert your construction loan to a standard home loan at the most competitive rate available.
The draw timeline

The five construction stages - and what triggers each draw

Construction loans release funds in stages. You pay interest only on what has been drawn - not the full loan. Lendology manages each draw with your builder and lender.

1
Base / Slab
Foundations complete and concrete slab poured. Typically 10–15% of the build cost. The first draw triggers after the base is inspected and approved.
2
Frame
Timber or steel frame erected and certified. Typically 20% of build cost. The lender sends a valuer to inspect before releasing this draw.
3
Lock-up
Roof, windows and external doors installed - the home is now weatherproof and secure. Typically 20% of build cost.
4
Fix / Fit-out
Internal linings, electrical, plumbing, cabinetry and plastering. Typically 25% of build cost. One of the larger draws - Lendology coordinates the valuation in advance to avoid delays.
5
Practical Completion
Final inspection passed and occupation certificate issued. Typically 15–20% of build cost. The loan converts to a standard home loan at this stage.
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Common questions

FAQs

How does a construction loan work?
A construction loan releases funds in progress payments as your builder completes each stage - typically slab, frame, lock-up, fix and completion. You pay interest only on the amount drawn at each stage, not the full loan amount. This keeps your repayments lower during the build period.
Can I use the SA First Home Owner Grant for a construction loan?
Yes. The SA First Home Owner Grant ($15,000) is available for eligible first home buyers building a new home under a registered building contract. The grant is typically paid at the first progress draw stage. Eligibility criteria apply - confirm with Lendology as part of your application preparation. Source: RevenueSA.
What if my build costs go over budget?
If costs exceed the original contract price, you may need to fund the difference yourself or negotiate with your lender for additional funds. This is why Lendology reviews the contract carefully before lodging - to minimise the risk of cost overruns causing finance issues mid-build.
How long does a construction loan take to arrange?
Allow 2 to 4 weeks from application lodgement to formal approval for a construction loan. Lendology manages the process to minimise delays - choosing lenders with efficient assessment and valuation teams.
No-obligation consultation

Building in Adelaide?

Book a chat with Jason or Steve. We find the right construction lender for your project and manage the finance from contract to completion.

Lendology is paid by the lender at settlement. Our advice is at no cost to you.