Build your dream home with confidence

Whether you’re building from scratch, knocking down and rebuilding, or completing a major renovation, a construction loan can help turn your plans into reality. At Base Home Loans, we specialise in guiding clients through the unique lending process for construction finance — making sure your loan is structured correctly and works for every stage of the build.

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What is a construction loan?

A construction loan is different from a standard home loan. Instead of receiving the full loan upfront, funds are released in progress payments as each stage of construction is completed. This ensures you only pay interest on the amount you’ve drawn down, not the entire loan.

Typical stages of a construction loan include:
Slab – laying the foundation.
Frame – structural framework of the property.
Lock-up – walls, windows, and external doors.
Fit-out – plumbing, electrical, cabinetry, and internal fixtures.
Completion – final touches and handover.

Key features of construction loans

Progress payments keep repayments lower during the build.

Ability to use equity in your land or an existing property to secure the loan.

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Interest-only during construction, switching to principal and interest when the home is complete.

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Flexibility to cover renovations, knockdown-rebuilds, or new builds.

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Why choose Base home loans for your construction loan?

Construction loans can be more complex than standard mortgages — with extra paperwork, lender requirements, and timelines to manage. That’s where our expertise makes all the difference.

We’ll take the stress out of the process so you can focus on building your dream home.

With Base Home Loans, you’ll benefit from:

  • Step-by-step guidance on structuring your loan.
  • Support with progress payment approvals 
  • Access to lenders who specialise in construction finance.
  • An experienced mortgage broker with years of experience
  • An efficient support team to call on whenever you need.
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All your construction Loan Frequently asked questions

Generally, you’ll need at least 5–10% of the total build cost, though requirements vary by lender.

Yes, if you already own land, the equity in it can be used as part of your contribution towards the build.

Most lenders will require approved plans and a fixed-price building contract before releasing funds.

Yes, provided they are included in the building contract and approved by the lender.

Your lender pays your builder in instalments as each stage of construction is completed. You’ll only pay interest on the amount drawn down, not the full loan, until the build is complete.

Most lenders allow for some delays, but if the build goes beyond the agreed timeframe, your loan approval may need to be extended. A broker can help manage this process with your lender.

Yes, but most construction loans are interest-only during the build. This helps keep repayments lower until your home is completed.

Yes — construction loans can be used for major renovations, knockdown-rebuilds, or extensions, provided you have a fixed-price contract with a licensed builder.

The construction loan will usually be structured to cover both your existing land loan and the cost of the build, rolled into one facility.

LMI works the same way as a standard home loan. If you’re borrowing over 80% of the property value (land + construction), LMI may apply.

Yes, in most cases lenders will require a valuation or inspection at different stages before releasing progress payments to the builder.

PERTH MORTGAGE BROKER

building your new home dreams on solid foundations

Daniel is the founder and mortgage broker at Base Home Loans – a small team with years of experience helping clients across Perth and nationwide. Daniel has a strong track record of guiding borrowers through even the most complex lending scenarios — including construction finance.


Known for his straightforward advice and client-first approach, Daniel makes sure every client feels supported and informed throughout their journey. Whether it’s your first build or a large-scale renovation, Daniel will ensure your loan is structured correctly and works for your long-term goals.

His mission is simple: to take the stress out of borrowing so you can focus on building the home you’ve always wanted.

Daniel Niederberger best mortgage broker construction loans Perth

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