Construction loans work differently from standard home loans. Instead of receiving the full amount at settlement, funds are released in stages as your build progresses.

How progress payments work

Your builder invoices at set milestones — typically slab, frame, lock-up, fixing and completion. The lender usually inspects or values the work before releasing each payment, and you generally pay interest only on the amount drawn.

What lenders will ask for

• A signed fixed-price building contract
• Council-approved plans and specifications
• Builder’s insurance details
• A quote for any extras not in the contract

Plan for the unexpected

Build in a buffer for variations and delays. We’ll help you structure the loan so each stage runs smoothly.

This article is general information only and does not take into account your objectives, financial situation or needs. Speak with a Pinnacle Mortgage broker for advice tailored to you.