Building a new home works differently from buying an established one. The lender releases money in stages as the build progresses, and you only pay interest on what's been drawn. We help you get the loan right before you sign with a builder.
How progress payments work
A typical build is paid in stages: deposit, slab, frame, lock-up, fixing and completion. The lender inspects or checks each stage before paying the builder. We stay on top of each draw so your builder gets paid on time.
First home buyers building new
Building a new home is how many first home buyers get the $30,000 Queensland First Home Owner Grant and pay no stamp duty on the land. See our first home buyer guide for the details.
Before you sign a building contract
- Get conditional pre-approval based on the full land and build cost
- Check that the contract is fixed-price and lists what's included
- Allow a buffer for variations and landscaping, fencing and driveways
Guides
- Building in Mackay: house and land under $750,000 and the $30,000 grant
- Construction loan progress payments, step by step
Common questions
Do I pay interest on the full construction loan from day one?
No. Interest is charged only on the amount drawn so far. Repayments rise as each stage is paid.
Can I get a construction loan as an owner-builder?
Some lenders will consider it, but options are limited and the deposit required is usually higher.