Building a new home or doing a knockdown rebuild
Construction Loans — broker support across Australia
A construction loan works differently from a standard home purchase — funds are released in progress payments as the build moves forward, and lenders have specific requirements at each stage. TwoFold Lending helps you understand how construction finance works, what documentation your builder and lender will need and how to avoid the surprises that catch people off guard during a build.
Book an appointmentProgress payments, builder docs and a loan that works in stages.
Construction loans release funds in stages as the build progresses — foundation, frame, lock-up, fixing, and completion. Each drawdown requires a lender inspection and the right documentation from your builder. Getting the timing right, making sure the builder's contract meets lender requirements and understanding what you'll pay at each stage are all things we work through before you sign anything.
- Progress payment loan structures
- Builder contract and documentation guidance
- Land and construction loan packaging
- Valuation and approval milestone support
Why construction finance is more complex than a standard home purchase.
With a standard home purchase, the lender values the finished property and funds settlement in one transaction. With a construction loan, the lender is funding something that doesn't exist yet — which means they assess the builder, the contract, the plans, the site and your capacity to service the debt throughout the build. Lenders have meaningfully different policies on all of these criteria.
TwoFold Lending identifies which lenders are most practical for your build type, helps you understand the documentation requirements before your builder asks for them and manages the drawdown process so you're not left chasing the bank at each stage. We keep the finance side moving so the build can move with it.
Common questions
Construction Loans — frequently asked questions
How is a construction loan different from buying an established home?
With a construction loan, the lender releases funds in stages as your build progresses rather than as a single lump sum at settlement. You only pay interest on the amount drawn at each stage, which keeps your costs lower during the build. Once construction is complete, the loan typically converts to a standard mortgage.
Can I include the land in my construction loan?
In many cases, yes. Some lenders package land and construction finance together in a single facility, while others treat them separately. The best structure depends on your timing, deposit and lender policy. We help you compare the options properly.
What documentation does a construction loan require?
You'll typically need a signed building contract, council-approved plans, a fixed-price quote from a registered builder, a builder's insurance certificate and your standard income and ID documents. Each lender has slightly different requirements — we guide you through exactly what's needed and when.