Building your home made simple

Building your own home gives you the flexibility to design a property that suits your lifestyle and future plans. A home building loan works differently to a standard home loan, with funds released in stages as construction progresses.

At Home Loans By Choice, we help you understand how construction finance works, compare options from major banks and non bank lenders across Australia, and guide you through the process from approval to final handover.

How Home Building Loans Work

Instead of receiving the full loan amount upfront, funds are released in progress payments at each stage of the build.

• Land purchase or deposit

• Slab or base stage

• Frame stage

• Lock up stage

• Fit out and completion

You typically only pay interest on the funds that have been drawn down, which can help manage cash flow during construction.

House and Land Packages

If you are buying a house and land package, the loan is usually structured in two parts.

• The land component settles first

• The construction component is funded progressively as the build begins

This structure can simplify the process and give you a clearer path from purchase to completion.

What You May Need to Apply

Lenders will assess both your financial position and the details of your build.

• Signed building contract with a licensed builder

• Council approved plans and specifications

• Evidence of income, savings and expenses

• Details of your deposit or equity

We help you prepare everything upfront so the process runs as smoothly as possible.

Costs to Consider

Building a home can involve additional costs beyond the contract price.

• Site costs and variations

• Progress payment interest

• Council fees and permits

• Landscaping, fencing and finishes

We help you plan for these so there are no surprises along the way.

Why Work With a Broker

Construction loans can be more complex than standard home loans. Having the right structure from the start matters.

• Compare options from major banks and non bank lenders across Australia

• Structure your loan to suit your build timeline

• Understand your borrowing power and repayments during construction

• Get support from application through to completion

If you are planning to build or exploring a house and land package, we can help you understand your options and guide you through each stage of the process.