Construction finance structured around your build program and your settlement date.
- Indicative assessment within 2 business days, then staged drawdowns across the build
- Loans from $200K to $20M
- Builders, developers, owner-builders, and self-employed ABN holders
- Duplexes, townhouses, boarding houses, knockdown rebuilds, and multi-dwelling sites
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead), and no-doc options, including lenders who do not require units to be sold before the build starts
Construction finance funds a build in stages rather than as a single advance. The lender assesses the project on what it will be worth when it is finished, releases funds progressively as the work is completed, and charges interest only on what has been drawn. It suits investors and builders building to sell or hold: a knockdown rebuild on an investment site, a duplex, townhouses, or a small multi-dwelling site. What varies most between lenders is documentation, how they treat owner-builders, and how quickly they release each progress payment. Joseph Farhat and his team will tell you honestly and quickly what is achievable for your situation.
Who we can help access finance
- Investors and builders building to sell or hold, including knockdown rebuilds on investment sites.
- Investors building a duplex or a secondary dwelling to hold for rental income.
- Investors buying a site who need the land settled and the build funded together.
- Self-employed borrowers and ABN holders with strong equity whose income does not present neatly in two years of returns.
- Borrowers who need land settled quickly while the construction facility is still being documented.
- Owner-builders, where the lender list narrows considerably and the loan-to-value ratio (LVR), the loan as a share of the property's value, is usually lower.
- Builders and investors whose existing facility has stalled at a progress draw and needs refinancing to complete.
- Anyone building something less conventional: kit homes, modular, container, or an unusual site.
Building a home you will live in? That is consumer lending, and it is covered on our home loans page.
How Construction Finance Works
The lender approves a total facility based on the land value plus the cost of the build, tested against the on-completion valuation. Funds are then released in progress payments tied to construction stages: slab, frame, lock-up, fixing, and practical completion. Before each release the lender usually requires an inspection or a valuer sign-off. You pay interest only on the balance drawn, so holding costs are lowest at the start and rise as the build progresses. At practical completion the facility either converts to a standard loan or is refinanced. Joseph Farhat and his team review the contract, the site, and your position, match the scenario to the right lender from the 90+ panel, and manage the application through to practical completion.
What Lenders Assess for Construction Finance
On-completion valuation
the whole facility is sized against what the finished property will be worth, not what the land is worth today.
The building contract
a fixed price contract with a licensed builder is the cleanest position. Cost-plus contracts and staged trade contracts narrow the lender list considerably.
Builder credentials
licence, insurance, and track record. A builder with problems on other sites can affect your application even where your own position is strong.
Contingency
lenders want to see a buffer in the budget, commonly 5% to 10%, because variations during a build are normal rather than exceptional.
Documentation available
full financials open up the sharpest bank pricing. Alt-doc and low-doc options exist with non-bank lenders at a higher rate.
Serviceability during the build
you generally need to carry interest on the drawn balance alongside any existing rent or mortgage, so lenders test both.
Owner-builder status
permitted by some lenders, at a lower LVR and with more scrutiny of the budget and program.
The site itself
slope, access, bushfire and flood overlays, and heritage constraints all affect both the valuation and the appetite.
The Construction Finance Process: What to Expect
- Talk to Joseph Farhat and his team about the site, the build, and what documentation you can produce. You will get an honest read on what is achievable before you sign a building contract.
- Provide the basics: the building contract and plans, council approval, the land contract or title, your builder’s licence and insurance details, and your financials or bank statements.
- We match your scenario to the lenders on the panel most likely to fund the build at a sensible LVR and rate. Contract type and owner-builder status change the lender list sharply, so this step matters.
- The lender orders an on-completion valuation and issues an approval setting out the facility limit, rate, drawdown schedule, and conditions. We go through it with you before you sign anything.
- Land settles if required, construction begins, and progress payments are released stage by stage. We stay involved through the draws, which is where most construction facilities actually run into trouble.
Indicative Finance Options
| Lender Type | Indicative Rate | Max LVR | Typical Loan Range | Loan Term | Key Consideration |
|---|---|---|---|---|---|
| Bank | From ~6.5% p.a. | Up to 80% on completion | $200K to $20M | 12 to 24 months | Fixed price contract and full income documentation usually required |
| Non-Bank Lenders | From ~8.5% p.a. | Up to 75% on completion | $200K to $20M | 6 to 24 months | Alt-doc and low-doc options, and faster assessment |
| Private Finance | From ~1% per month | Up to 70% on completion | $500K to $20M | 6 to 24 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for construction finance
We represent you, not the lender
Joseph Farhat and his team act in your interest from the first conversation through to practical completion.
Talk to us before you sign the building contract
contract type is one of the biggest drivers of which lenders will fund you, and it is very hard to change afterwards.
Progress draws are where builds stall
a lender that is slow to release a payment can hold up your site and cost you far more than a slightly better rate saves.
Owner-builder and alt-doc appetite is uneven
some lenders will not touch either, and knowing which do before you apply saves weeks.
On-completion valuations decide the facility
we set expectations against a realistic valuation rather than the number you hope for.
One conversation, not five applications
we approach the lenders most likely to fund your build first, so fewer enquiries are recorded on your credit file.
90+ lenders on one panel
bank, non-bank, and specialist, so a fixed price contract with full financials can go to a bank at a sharper rate and a complex build still has options.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if the land settles next month, tell us early and we will tell you what is realistically achievable.
Frequently asked questions
What is construction finance?
Construction finance is a loan that funds a build in stages rather than advancing the full amount at settlement. The lender approves a total facility based on the land value plus the build cost, tested against the on-completion valuation, then releases funds progressively as construction stages are completed. You pay interest only on the balance drawn. At practical completion the facility converts to a standard loan or is refinanced.
How much can I borrow to build?
Most lenders advance up to 80% of the on-completion value with a bank, and 70% to 75% with non-bank lenders. Because the assessment is against the finished value rather than the land alone, equity in an existing site often covers much of the deposit. Facilities commonly run from $200,000 to $20,000,000. Joseph Farhat and his team will review your site, your contract, and your position and give you an indicative range before you sign anything.
How do progress payments work?
Funds are released against construction stages, typically slab, frame, lock-up, fixing, and practical completion, with the builder invoicing at each stage. Most lenders require an inspection or valuer sign-off before releasing. The practical issue is speed: a slow release holds up your builder and can push the whole program out. Lenders differ considerably here, and it is worth weighing alongside the rate.
Can I get construction finance as an owner-builder?
Yes, though the lender list narrows considerably and the LVR is usually lower, commonly around 60% to 70% of on-completion value. Lenders scrutinise the budget, the program, and your relevant experience more closely, because there is no head contractor carrying the risk. Some lenders will not consider owner-builders at all. Joseph Farhat and his team will tell you which lenders on the panel do, and what they require.
What happens if the build goes over budget?
Variations are normal, which is why lenders want a contingency of 5% to 10% built into the budget from the start. If costs exceed the facility, the shortfall generally has to be funded by you or through a further advance, which is assessed again and takes time. Where a facility has stalled part way through a build, it can often be refinanced to complete the project, and that is a scenario we see regularly. Call early rather than late.
Can I get construction finance with low-doc, no-doc, or alt-doc?
Often, yes. Several non-bank lenders on the panel assess construction lending on BAS, bank statements, or an accountant declaration rather than full financials, which suits self-employed builders and investors. No-doc options exist at lower LVRs and shorter terms. The trade-off is consistent: less documentation means a higher rate or a lower LVR, while full financials open up the sharpest bank pricing. Joseph Farhat and his team will lay out both paths with the numbers.
Do you work with borrowers with bad credit?
Yes, we do. Defaults, past arrears, or a mark on your file do not rule you out of construction finance, and it is not something we will make you feel awkward about. Several lenders on our panel weigh the on-completion valuation and the LVR far more heavily than the credit file, and will price for the risk rather than decline it. What helps most is telling us early so we approach the right lender first instead of adding enquiries to your file. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
What does construction finance cost?
Bank construction lending starts from around 6.5% per annum, non-bank from around 8.5%, and shorter-term private options are quoted monthly. Beyond the rate, expect an establishment fee, valuation costs including progress inspections at each draw, and legal fees. Because interest is charged only on the drawn balance, your holding costs start low and build through the project, so the total depends heavily on the construction program.
Why work with Settled With Joe to finance your construction?
Because you get one conversation instead of a round of applications, and because the decisions that matter most on a build happen before you sign the contract. Most of the people we help are self-employed builders, developers, and investors working to a land settlement date or a builder’s start date. Those situations are not unusual to us and there is no judgement in the conversation. What matters is the on-completion valuation, the building contract, and the documentation you can produce. Contract type and owner-builder status change which lenders will fund you more than almost anything else, and progress draw speed decides whether the build actually runs to program. Our panel covers 90+ bank, non-bank, and specialist lenders. We are based in Sydney and work with borrowers Australia-wide. Joseph Farhat and his team will tell you honestly and early whether we can help and what is realistically achievable in your timeframe.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with construction finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges construction finance Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Lender appetite and valuation turnaround vary by location, particularly for rural sites and areas with bushfire or flood overlays. Joseph Farhat and his team will identify which lenders on the panel are the best fit for your site and timeframe.
