We specialise in construction finance
Building a home brings great excitement and satisfaction. Yet, the financial aspect, whether it's securing a home construction loan or a regular loan, can be challenging without expert guidance.
At ZedPlus, we eliminate the guesswork of construction loans by providing a dedicated team to guide you from the groundbreaking ceremony to the completion of your home.
Our home construction loans make it easy to manage costs with interest-only payments during the build and principal payments starting once your home is complete.
While the construction loan process comes with added challenges, our specialists provide personalised support to help you navigate it with ease and secure the ideal construction loan for your dream home.
What is a construction loan?
A construction loan is designed for borrowers building a home, investing in property, or undertaking significant renovations. You may also need this type of loan when purchasing:
- Land for future construction
- A house and land package deal
- Buying property ‘off the plan’
- Property requiring major renovations
How do construction loans work?
Building a home should be an inspiring and enjoyable journey. Our home loan experts make the process easy to follow, with clear steps and dedicated support to keep the experience stress-free and rewarding. Here’s a breakdown of the steps involved in our construction loan:
Receive an invoice for each stage
The construction process has five stages: laying the slab, building the frame, securing the lock-up, fixing, and project completion. After each stage, the builder issues an invoice, which you forward to us, and we handle the payment directly from your loan to the builder.
Make interest-only repayments
As your construction loan is gradually drawn, interest applies only to the amount used. For e.g. if $30,000 of a $300,000 loan is drawn, interest applies only to $30,000, This approach helps keep your payments manageable throughout the building process.
Loan conversion
You receive the final invoice after the last construction stage like painting and finishing. Once it’s paid, the interest-only period ends. If construction finishes before the interest-only term expires, your loan will automatically convert to principal and interest repayments.
Ready to Construct? Here’s how we can help you
At ZedPlus, we work hard to help make your dream home everything you want it to be. We ensure you are comfortable with each step of the construction home loan process. Our team is here to guide you through:
- Down payments, including a 5% option
- The application
- The appraisal
- Loan approval & draws
- Locking your permanent rate
- And more
Share your construction home loan goals with us today
Why choose ZedPlus for construction financing?
Here are a few of the best reasons to choose ZedPlus:
- We have extensive expertise: With years of experience, we know the application process inside out—bank policies, timeframes, delays, and forms. We'll simplify and streamline the paperwork for you.
- We work for you, not the banks: We don't charge any fees for our construction loan services, as our commission is paid by the lender you choose. This ensures our brokers are with you every step of the way to secure the right loan.
- We secure competitive rates: Interest rates aren't everything, but we aim to find the best rate and loan package for you. Even a 2-3% savings over five years can greatly lower your payments.
- We collaborate with trusted lenders: We work with over 40 lenders to ensure you have access to the best loan options available. Our extensive network allows us to find tailored solutions that meet your specific needs.
- We have 5-Star reviews: Our clients' 5-star Google reviews highlight our expertise in construction loans. These reviews showcase our dedication to exceptional service and securing the best loan terms for your construction project.
Contact us
Book a call with one of our home loan experts to discuss whether a construction loan may be right for you and your circumstances.
Frequently asked questions
A construction loan is a short-term loan designed to finance the building or renovation of a property, unlike traditional home loans that fund the purchase of an existing property. These loans disburse funds in stages, known as draws, aligned with the progress of construction.
Borrowers pay interest only on the disbursed amount, which helps manage costs during the build. Construction loans typically have higher interest rates and stricter eligibility criteria, requiring a strong credit score, stable income, and a larger down payment, often between 20-25% of the project cost.
They usually last 6 to 12 months, and once construction is complete, borrowers transition to a traditional mortgage or repay the loan. The property under construction serves as collateral, and lenders may require insurance and a final appraisal to confirm the property’s value. Construction loans provide flexibility but demand careful planning and budgeting to avoid risks and complete the project smoothly.
Most lenders require a 20% deposit for construction loans, but we work with a range of lenders that offer more flexible options, such as loans with deposits as low as 5%.
Our brokers analyse your financial situation to identify lenders and products that best match your needs, even if your Loan-to-Value Ratio (LVR) exceeds 80%.
For borrowers with a smaller deposit, we also explore ways to offset Lender’s Mortgage Insurance (LMI) costs, helping you structure the loan so it fits within your budget.
Whether you're a first-time builder or an investor, we tailor solutions that empower you to start building sooner without compromising financial security. With our team by your side, you can start your build with confidence, knowing that you’re supported by a team experienced in navigating construction finance challenges.
Loan approvals with ZedPlus are typically finalised within 2-3 business days, assuming all required documents are ready. To speed up the process, we recommend preparing key paperwork in advance, such as:
- Builder contracts and building permits.
- Proof of income and employment.
- Personal identification and credit history.
At ZedPlus, we take care of the administrative workload, checking your documents for accuracy before submission and identifying potential issues early.
Our direct communication with lenders allows us to fast-track approvals so you can start your build on time without unnecessary delays. We also provide ongoing support post-approval, ensuring a smooth transition as construction progresses.
Yes, we understand that building projects don’t always go exactly as planned—unforeseen expenses or design changes can arise. We offer flexible loan management to accommodate variations in your construction budget.
Our brokers work closely with your lender to adjust loan limits or terms if necessary, helping you manage cost overruns efficiently.
We also explore options like loan redraw facilities or pre-approved contingencies to cover unexpected expenses, ensuring that your project stays on track without financial disruption.
Construction loans come with unique risks, such as delays, builder insolvency, or project cost overruns. At ZedPlus, our team helps mitigate these risks by carefully vetting loan conditions and collaborating with reputable builders and lenders.
We also structure loans with progress payment monitoring, ensuring that funds are only released upon verified completion of each stage. Additionally, we can advise you on builder’s risk insurance so you are financially protected.
With our proactive support, you can avoid common pitfalls and focus on the joy of building your home.
Fixed-price contracts provide certainty by locking in the total cost of construction, while cost-plus contracts allow for flexibility if material or labor costs fluctuate.
Our brokers analyse both contract types based on your financial situation and project goals. If you prefer predictability, we help structure loans aligned with fixed-price contracts.
However, if you anticipate potential changes in scope or material costs, we can coordinate cost-plus contracts while securing a loan with flexible drawdowns. Our team ensures that your loan structure aligns perfectly with your chosen contract type, giving you financial peace of mind.
Refinancing your construction loan after completion allows you to secure a more competitive interest rate, reduce your monthly repayments, or access enhanced loan features. This can make managing your finances easier and free up cash flow for other priorities.
Once your home is complete and the loan shifts to principal-and-interest repayments, our team will thoroughly review your financial situation to identify the most suitable refinancing options tailored to your needs.
Our brokers specialise in sourcing post-construction loans that offer lower interest rates, more flexible terms, or added benefits such as offset accounts, helping you maximise financial advantages. These features can enhance flexibility and potentially shorten your loan term, saving you money in the long run.
We handle every step of the refinancing process, from loan comparison to final approval, ensuring a smooth transition. With our expertise, you can move forward confidently, knowing that your new loan structure is designed to reduce financial pressure and align with your future goals.
Australia has a range of financial incentives to ease the burden of buying or building a home. Programs like the First Home Owner Grant (FHOG) provide substantial financial support, helping first-time buyers offset construction costs.
Additionally, incentives like the Home Guarantee Scheme allow buyers to secure a home with a deposit as low as 5%, without the need for Lenders Mortgage Insurance (LMI).
Our team is highly experienced in navigating these schemes and ensuring you meet eligibility criteria, including state-specific conditions such as residency requirements and property value caps.
We take care of all the paperwork, helping you apply for relevant grants and integrate them seamlessly into your loan structure, reducing the total amount you need to borrow.
This strategic approach makes it easier for you to access affordable financing and get the most out of available government support.