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Construction Loans
Explore lending pathways to finance a new build, knockdown rebuild or major renovation.
Who this may suit
Owner-builders or those engaging a licensed builder for a new home
Borrowers purchasing land and building in stages
Homeowners undertaking a knockdown rebuild
Investors building a new rental property
Common use cases
Building a new home on vacant land
Knockdown and rebuild on existing land
Major structural renovation or extension
Dual occupancy or granny flat construction
Investment property new build
Land and construction combined loan
Documents commonly required
Valid photo ID
Signed fixed-price building contract with a licensed builder
Council-approved plans and permits
Builder's licence and insurance certificates
Land title or contract of sale for the land
Payslips or tax returns for income verification
Last 3–6 months bank statements
Quotes for variations if applicable
Important considerations
Funds are drawn in progress payments (stages) aligned to build milestones — not paid as a lump sum
A fixed-price contract with a licensed builder is required by most lenders
Construction loans typically convert to a standard home loan on completion
Interest during construction is charged only on funds drawn — not the full approved amount
Council approval and building permits must be in place before drawdowns commence
Builder delays or variations can affect drawdown schedules and costs
All lending subject to lender assessment, valuation, credit criteria and final approval
Ready to explore your options?
Start a lending enquiry
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Helpful official resources
The following links are to independent government and regulatory sources. They are provided for general reference only.
Important Information
Information on this page is general in nature and has been prepared without taking into account your objectives, financial situation or needs. It does not constitute credit advice, financial advice, loan approval or a loan offer. Any lending outcome is subject to lender assessment, eligibility, verification, valuation, credit criteria, responsible lending obligations and final approval. Fees, charges, terms, conditions and lending criteria may apply. K&M Capital may assist borrowers by collecting enquiry information, helping prepare lending scenarios and connecting borrowers with brokers, lenders, service providers or referral partners where appropriate. K&M Solutions and Services Pty Ltd (ACN 649 305 126) does not hold an Australian Credit Licence.
Information on this page is general in nature and has been prepared without taking into account your objectives, financial situation or needs. It does not constitute credit advice, financial advice, loan approval or a loan offer. Any lending outcome is subject to lender assessment, eligibility, verification, valuation, credit criteria, responsible lending obligations and final approval. Fees, charges, terms, conditions and lending criteria may apply. K&M Capital may assist borrowers by collecting enquiry information, helping prepare lending scenarios and connecting borrowers with brokers, lenders, service providers or referral partners where appropriate. K&M Solutions and Services Pty Ltd (ACN 649 305 126) does not hold an Australian Credit Licence.