Construction Loans

Your home building partner

Construction Loans

Are you a home owner about to build your mansion at last? Perhaps you’re a builder enjoying the demand for new homes around the country. Whoever you are, and whatever your project, we’re here to help!

People apply for a construction loan when they are building a home or sometimes another real estate project. A construction loan (also known as a ‘self-build’ loan) covers the costs of the project.

MDM Finance offers construction loans for registered and owner builders and can navigate you through the conditions and challenges of building your home. Think of us as a member of your construction team!

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How A Construction Loan Works

Construction must be done with a licensed builder (either fixed price or cost plus contracts), or by owner-builders. The definition of ‘home’ includes kit homes, multiple dwellings, transportable homes and house-and-land packages.

Unlike a home mortgage, you don’t receive the full amount of the loan at once. A construction loan is designed as a progressive drawdown; that is, you receive instalments of the loan amount when you need them at the different stages of construction.

You generally only pay interest on the amount that is drawn down, instead of on the whole loan amount. Once the construction is over, the loan amount becomes due and/or is converted to a normal mortgage.

When applying for a construction loan, you will need Council-approved plans and specs, a signed and dated building contract (including the building stages and schedule of payments) and applicable variations and quotes.

You may also need a quantity surveyor. Before settlement, you will need to provide Builders Risk Insurance and a copy of your builder’s Public Liability Insurance.

construction loan broker
MDM Finance can find you the most suitable loan for your situation and advise you on all the required documentation.

When To Expect Your Construction Loan Instalments

Here are the usual stages when you can expect to draw down on your construction loan.


Slab down or base

Laying the foundation – ground levelling, waterproofing, plumbing.

Frame stage

Building the frame of your property – partial brickwork, trusses, roofing, windows.


External walls, doors, windows (to make sure your house is lockable).

Fitout or fixing

Internal fittings and fixtures – gutters, plumbing, electricity, part-installation of cupboards and benches, plasterboards.


Conclusion of contracted items – final payments for builders and equipment, additional plumbing and electricity and overall cleaning.

Loans That MDM Offers

MDM Financial Solutions is a specialist finance broker with experience in the following loan types:

Home Loans
Low Doc Home Loans
Construction Loans
Renovation Loans
Refinancing Loans
Commercial Loans
Business Loans
SMSF Loans
Investment Loans

Development Loan

If you are preparing land ready for constructing building sites, you can apply for a land development loan. These loan types require substantial effort. MDM Finance Solutions has gained considerable experience in this area and we can help you with all aspects of land development loans.

If you want to develop and start building, contact us at MDM Finance Today!

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