Construction Loans Brisbane
Compare construction loan options in Brisbane. We help you understand building loans, land & construction packages, and renovation finance. Free comparison.
Building your dream home in Brisbane? Whether you’re constructing a new home, buying a house and land package, or undertaking major renovations, compare construction loan options from over 40 lenders and connect with brokers who specialise in building finance.
How Construction Loans Work
Construction loans in Brisbane work differently to standard home loans. Instead of receiving all funds at settlement, the loan is drawn down in stages as your builder completes each phase of construction.
Typical Construction Loan Stages
- Deposit/Slab - Initial payment and concrete slab
- Frame - Structural framing complete
- Lock-up - Roof, windows, and doors installed
- Fit-out - Internal fixtures and fittings
- Completion - Final stage, building complete
A qualified Brisbane broker can ensure your loan is structured correctly for each progress payment.
Types of Construction Finance
Brisbane home builders have various construction loan options:
Building on Your Own Land
If you already own land in Brisbane, construction-only finance may be available. Your existing land can serve as equity, potentially reducing or eliminating the need for additional deposit.
House and Land Packages
Popular in growth areas like Springfield, North Lakes, and Yarrabilba. Finance can be structured for the land purchase and subsequent construction phases.
Knockdown Rebuild
Demolishing an existing Brisbane home to build new? Lenders offer finance covering demolition, construction, and potentially temporary accommodation.
Major Renovations
Extending or renovating your existing Brisbane home? Renovation loans work similarly to construction loans, with staged drawdowns as work progresses.
Construction Loan Interest
With construction loans, you typically pay interest only on funds drawn - not the full loan amount. This reduces your costs during construction:
Example:
- Approved loan: $600,000
- After slab stage drawn: $120,000
- Interest charged on: $120,000 (not $600,000)
Once construction completes, your loan converts to a standard principal & interest (or interest-only) loan.
Brisbane Builders and Construction Lenders
Lenders have requirements for builders they’ll work with. Most require:
- Registered builder licence (QBCC in Queensland)
- Builder’s insurance and warranty coverage
- Fixed-price building contract
- Minimum experience requirements
Different lenders have different builder requirements - a broker can advise which lenders work with your chosen builder.
Construction Loan Requirements
To apply for a construction loan in Brisbane, you typically need:
- Approved council plans
- Fixed-price building contract
- Builder’s licence and insurance details
- Specifications and inclusions list
- Valuation of completed property
- Standard income and deposit requirements
Progress Payment Inspections
Lenders require inspections before releasing each progress payment. This protects you and the lender by ensuring:
- Work is completed to contract specifications
- Building quality meets standards
- Progress matches claimed completion percentage
The cost of these inspections is typically $150-300 per stage.
Why Use a Broker for Construction Loans?
Construction loans are more complex than standard home loans. A qualified broker can add value by:
- Finding lenders experienced with construction finance
- Ensuring your loan structure suits your build timeline
- Coordinating documentation between you, builder, and lender
- Managing the progress payment process
- Troubleshooting issues during construction
Popular Brisbane Areas for New Construction
Brisbane home builders are active across the region:
- Growth Corridors: Springfield, North Lakes, Yarrabilba
- Knockdown Rebuild: Inner suburbs with older homes
- Acreage: Samford, Mount Nebo, Dayboro
- Unit Developments: Brisbane CBD and inner suburbs
Construction Loan Costs to Consider
Beyond the loan itself, budget for:
- Land transfer (stamp duty) if purchasing land
- Council fees and contributions
- Connection costs (water, power, sewer)
- Landscaping and driveways
- Temporary accommodation during construction
Free Construction Loan Comparison
Planning to build in Brisbane? Use our free comparison service to explore construction loan options from over 40 lenders, then connect with qualified brokers who specialise in building finance.
This is general information only and not financial advice. Connect with a licensed mortgage broker for advice specific to your situation.