Mortgage Brokers Geelong

Construction Loans Geelong

Talk to one of our brokers, who lines up construction finance that draws down cleanly at each stage.

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A construction loan pays for building a home, released in stages as the work gets done rather than all at once. It’s a different beast to a standard home loan, and getting it wrong can stall your build. Talk to one of our licensed local brokers, who lines up construction finance that draws down cleanly at each stage and keeps the build moving. Free to you, no obligation.

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When you need a construction loan

You’re building rather than buying something that already exists. That might be a house-and-land package in one of Geelong’s growth estates, a knock-down rebuild on a block you own, or a custom home with an architect. In every case the money can’t come as one lump sum, because the house doesn’t exist yet to secure it against.

So the lender pays it out in stages that track your builder’s progress. That staging is the whole reason construction loans are their own thing, and it’s where people get caught out if the finance isn’t set up properly.

How our brokers help

The broker sets the loan up around your building contract. Most builds draw down across five stages: the slab, the frame, lock-up, fit-out, and completion. At each one the lender inspects, then releases the next chunk. You usually pay interest only on what’s been drawn, so your repayments start small and grow as the house does.

A broker who handles construction lending makes sure the loan matches your fixed-price contract, lines up each drawdown so your builder gets paid on time, and picks a lender that’s comfortable with your builder and estate. They also flag the traps: rate locks that expire before completion, valuations that come in short, grant timing that has to fit the build. Because the lender pays the broker on settlement, this typically costs you nothing.

Building your first home

Construction is one of the most common ways first home buyers get into the market in Geelong, and for good reason. The First Home Owner Grant pays $10,000 towards a new home up to $750,000, which building a first home usually qualifies for. Combine that with the first home stamp duty saving and the numbers on a new build can look very good.

Where the building is happening

Most of Geelong’s new builds are in the growth corridors: Armstrong Creek, Mount Duneed and Charlemont to the south, Lara to the north, and Leopold and Curlewis heading onto the Bellarine. A broker who knows these estates understands how the local builders and lenders work together. See all suburbs.

Renovating an existing home rather than building new is a renovation loan. Buying an established place is a standard home loan. Building to rent out is an investment loan structured for construction.

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Tell us about your build and one of our brokers who handles construction finance picks it up.

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Most of Geelong's new builds are in the southern and Bellarine growth corridors.

See every suburb we cover on the service locations page.

Common questions

How does a construction loan work?

Instead of handing over the full amount at once, the lender releases the loan in stages that match your builder's progress: slab, frame, lock-up, fit-out and completion. You usually pay interest only on the money drawn so far, which keeps repayments lower while the build is underway. A broker manages each drawdown with the lender.

What deposit do I need for a construction loan?

Lenders generally want around 20% of the total land and build cost to avoid lenders mortgage insurance, though lower-deposit options exist. They lend against the finished value based on your fixed-price building contract. A broker tells you which lenders suit your deposit and how they treat house-and-land packages in Geelong's growth estates.

Can I get the First Home Owner Grant when building?

Yes, if you're eligible. The $10,000 First Home Owner Grant applies to new homes valued up to $750,000, which includes building your first home. That makes construction a common path for first home buyers in estates like Armstrong Creek and Lara. A broker helps you time the grant with your build drawdowns.

What happens if the build runs over budget or over time?

It's a real risk with builds, so lenders base the loan on a fixed-price contract to limit surprises. If costs rise beyond that, you generally cover the gap. Delays can affect your rate lock or grant timing. A broker who handles construction loans plans for this and keeps the finance aligned with the build.