Home construction loans

Prime Land and Construction Loans for full doc borrowers with a good credit history.

When the house of your dreams is not an existing house our Home Construction Loans can help you build that dream home. At Direct Credit Home Loans Australia we have extensive experience with Home Construction Loans and good relationships with reputable builders.

Generally there is a  90% maximum lend on a construction loan and you must demonstrate 5% genuine savings or equity in a property at this level of lending.

Home construction loans are classified into three:

  1. Land and construction
  2. Land only – Must intend to build on the land in 12 months
  3. Construction only

What are my options for making repayments during construction?

While you have the land only, and for the duration of construction, the loan is variable rate as interest only. Interest is calculated daily and is due on the anniversary date of your loan. Once construction is complete the loan converts to a variable rate, principal and interest automatically. Remember, requests for other products can be made.

How does a construction loan work?

With a standard home loan all loan funds are advanced at settlement – by paying a purchaser, for example. Conversely, with a construction loan we will usually retain all of the cost to construct your property (this is usually the fixed price building contract amount).

Construction funds are progressively drawn down at each stage of construction. Each progress draw down is referred to as a ‘Progress Payment’.

Progress Payments are made directly to the builder. If we are only funding a portion of the cost to construct your home, you must contribute your own
funds before you can draw down the loan funds. Similarly, funds retained for construction cannot be used towards the purchase of land.


Steps to your Home construction loans


Am I eligible for a home construction loan?

  • Loan to Value ratio up to 90%
  • Fixed price builders contract required
  • Full doc borrowers only – Low doc currently unavailable
  • Owner builder does not qualify
  • Usual credit criteria applies for Prime loans

How much can I borrow

See how much you can borrow using our simple borrowing power calculator, or call one of our friendly team to get a detailed borrowing capacity over the phone today.


Book a consultation or apply online

Call us on Freecall 1800 000 800 for a no obligation chat or, if you’re ready to apply get started now.

Start your application
Direct Credit Home Loans
1800 000 800 Australian Credit License Number 392727