Monza Finance GroupMortgage & Finance Brokers
A construction loan works differently from a normal home loan. The lender pays your builder stage by stage, and you only pay interest on what's been paid out. We get the paperwork right so every payment goes through on time.
New builds, house and land packages, knockdown rebuilds and owner builders. No cost to you in most cases.
Knowing how the money flows helps you plan your savings and avoid delays with your builder.
The lender pays your builder as each stage is finished, usually after you approve the builder's invoice.
You only pay interest on the money released so far, so repayments start small and grow as the build goes on.
Most construction loans are interest-only during the build, then switch to principal and interest once you move in.
Your deposit and savings are usually used before the lender's funds, so it pays to know when you'll need them.
The lender values your home from the plans and contract, as if it were already built.
Lenders set time limits for starting and finishing the build, so we check your builder's timeline fits.
Your building contract sets the exact stages and how much is paid at each one. These are the most common.
| Stage | What's done before payment |
|---|---|
| Deposit | You sign the building contract |
| Base | The slab or footings are laid |
| Frame | The frame of the home is up |
| Lock-up | External walls, roof, windows and doors are in |
| Fixing | Inside fit-out, such as plaster, cabinets, doors and fixtures |
| Completion | The home is finished and handed over to you |
Check each stage is finished before you approve the payment. The lender may also send a valuer to inspect the work.
On top of the usual income and ID documents, a construction loan needs paperwork about the build itself.
A plain-English summary of the official information, as at October 2026.
Protects you if your builder dies, disappears or becomes insolvent.
Building a new home is where SA first home buyers get the most help.
Building it yourself is possible, but the loan and the rules are different.
Love the location but not the house? You can replace it with a new home.
Building takes months. We stay with you from your first quote to your final payment.
To avoid lenders mortgage insurance you'll usually need 20% of the total cost of the land and the build, plus money for other costs. You can borrow more with mortgage insurance. Eligible first home buyers may be able to build with a 5% deposit under the First Home Guarantee. If you already own the land, the equity in it can count towards your deposit.
Yes, but only on the money that's been paid to your builder so far. Repayments start small and grow as each stage is paid. Most construction loans are interest-only during the build, then switch to principal and interest once the home is finished.
Variations and extras aren't automatically covered by your loan. The lender may need to approve an increase, and often the extra cost has to come from your own savings. That's why we recommend a fixed-price contract and a buffer for the unexpected.
Yes. The First Home Guarantee can be used for land with a separate contract to build, or for a house and land package. Specific timeframes apply to signing contracts, so talk to us before you sign. Our first home buyer guide explains the other SA schemes too.
Yes. You can take out a loan for the land first and a construction loan when you're ready to build. Some lenders set a time limit for starting the build, so let us know your plans early and we'll pick a lender that fits.
Some lenders offer owner-builder loans, but there are fewer of them and they usually need a bigger deposit and detailed plans and quotes. You also can't take out building indemnity insurance as an owner builder. Talk to us before you commit so we can check what's possible.
In most cases there's no cost to you. We're paid a commission by the lender when your loan settles. If a fee ever applies, we'll tell you in writing before we go ahead.
Talk to us before you sign with a builder. We'll make sure the numbers and the paperwork line up, so your build starts on time.
General information only. Not financial advice. It doesn't take into account your objectives, financial situation or needs. Speak to a licensed broker about your situation.
Lending criteria, fees and charges apply, and all loans are subject to lender approval.
Monza Finance Pty Ltd, ABN 21 617 504 186. Michael Barton is an Authorised Credit Representative (CRN 497244) of LMG Pty Ltd, Australian Credit Licence 390222.