5.0 from 4 Reviews
Building a new home is one of the most significant financial commitments you will make. At MJ Finance and Advisory, we work with clients in Perth, across WA, and Australia wide to access Construction Loan options from banks and lenders across Australia, so you can move forward with confidence and clarity.
What Is a Construction Loan?
A construction loan is a specialised form of building loan designed to fund the construction of a new home or major renovation. Unlike a standard home loan, a construction loan releases funds in stages rather than as a single lump sum. This structure is known as a progressive drawdown, and it means you only charge interest on the amount drawn down at any given time. As your builder completes each stage of the build, funds are released according to a construction draw schedule, keeping your repayments manageable throughout the build period.
MJ Finance and Advisory helps clients understand how construction finance works, what lenders look for, and how to structure a loan that suits their specific project and financial position.
How Construction Funding Is Released
Construction funding is typically released in instalments aligned to a progress payment schedule. Each stage of the build, such as the slab, frame, lock-up, fit-out, and practical completion, triggers a progress payment. Before each drawdown, lenders generally require a progress inspection to confirm the work has been completed to the required standard. This protects both the borrower and the lender throughout the build.
Most construction loans offer interest-only repayment options during the construction period, which helps manage cash flow while your home is being built. Once construction is complete, the loan typically converts to a standard principal and interest loan. This is sometimes referred to as a construction to permanent loan arrangement.
At MJ Finance and Advisory, we help clients understand the Progressive Payment Schedule in detail before they commit, so there are no surprises once the build is underway.
Types of Construction Finance We Can Help With
MJ Finance and Advisory works across a broad range of construction finance scenarios. Whether you are purchasing a house and land package, building a custom home on suitable land, or undertaking a major renovation, we can help you identify the right structure for your situation.
We assist with land and construction packages, project home loans, custom home finance, spec home finance, owner builder finance, and off the plan finance. We also work with clients seeking a house renovation loan or home improvement loan for significant works on an existing property. Each of these scenarios has different lender requirements, and MJ Finance and Advisory brings the knowledge to help you work through those differences.
For clients pursuing a land and build loan, it is important to understand that lenders will typically require a fixed price building contract with a registered builder before approving construction funding. The loan amount is assessed against the total cost of the land and build combined, and lenders will want to see council plans and, where applicable, evidence of development application approval.
Construction Loan Interest Rate Considerations
The construction loan interest rate you are offered will depend on a range of factors, including your financial position, the lender, the loan structure, and whether you opt for a fixed or variable rate. Because construction loans operate on a progressive drawdown basis, the interest you pay during construction is calculated only on the funds that have been released, not the full loan amount. This can make construction finance more cost-effective during the build period compared to drawing down the full loan from day one.
MJ Finance and Advisory compares construction loan interest rate options across multiple lenders to help you understand what is available and what suits your circumstances.
Important Conditions to Be Aware Of
Construction loans come with specific conditions that borrowers need to understand before signing. Most lenders require you to commence building within a set period from the Disclosure Date. Lenders will also want confirmation that your builder is a registered builder and that a fixed price contract is in place. Some lenders charge a Progressive Drawing Fee for each progress payment drawdown, which is worth factoring into your overall cost planning.
If you are an owner builder, the requirements are different again. Owner builder finance is available through select lenders, but the assessment criteria are more stringent, and not all lenders offer this product.
MJ Finance and Advisory also assists clients who need to pay sub-contractors directly, such as plumbers and electricians, under a cost plus contract arrangement. This type of build requires careful loan structuring to ensure funds are available at the right time.
Whether you are looking to build your dream home with a custom design, secure a new home construction finance package for a project home, or explore renovation finance options, MJ Finance and Advisory is here to help you understand your options and connect you with the right lenders. Speak with our team today to discuss your construction loan application and what it takes to get your build underway.
Step 1: Initial Consultation
We start with a no-obligation conversation to understand your goals. Whether you are buying your first home, investing in property, or looking to refinance, we take the time to listen and learn what matters most to you.
Step 2: Fact Find and Assessment
We gather the key details about your financial situation, including your income, expenses, assets, and liabilities. This helps us build a clear picture of where you stand and what options are available to you.
Step 3: Research and Strategy
Using our panel of lenders and deep market knowledge, we research the most suitable finance options for your needs. We compare rates, fees, features, and loan structures to find the right fit, not just the cheapest rate.
Step 4: Recommendation and Presentation
We present our recommended solution in plain language. We walk you through the numbers, explain the terms, and answer any questions so you feel confident before moving forward.
Step 5: Application Preparation
Once you are happy to proceed, we prepare and package your application. We handle the paperwork, liaise with lenders, and make sure everything is submitted correctly the first time to avoid delays.
Step 6: Approval and Settlement
We manage the process through to formal approval and keep you updated every step of the way. We work closely with your real estate agent, conveyancer, or solicitor to make sure settlement goes smoothly.
Step 7: Ongoing Support
Our relationship does not end at settlement. We check in regularly to make sure your finance still works for you as your life and goals change. We are always here when you need us.
As a single income borrower, I wasn't sure whether buying an investment property was even possible. Michael first helped me refinance my home loan to a much more competitive interest rate, which immediately reduced my monthly repayments. He then showed me how I could access the equity in my home to fund the deposit and costs for my first investment property. Throughout the process, Michael was patient, responsive, and explained everything in a way that was easy to understand. I never felt rushed or pressured, and he was always available whenever I had questions. What I appreciated most was that he looked at my overall financial position and future goals, rather than just trying to arrange a loan. The whole experience was far less stressful than I expected, and I'm excited to have taken the first step in building my property portfolio. I highly recommend Michael to anyone looking for a broker who genuinely wants to help you achieve your financial goals.
Sally Tao
We'd spoken to a few mortgage brokers before meeting Michael, but none of them took the time to understand what we were actually trying to achieve. Michael asked about our long-term plans, explained different lending strategies, and showed us how we could use the equity in our home to keep growing our property portfolio without overextending ourselves. What impressed us most was that there was never any pressure. He took the time to answer every question, explained the pros and cons of each option in plain English, and made sure we were comfortable before moving forward. The whole process was smooth from start to finish, and we now have a much clearer strategy for building wealth through property. If you're after someone who genuinely cares about your financial future rather than just getting a loan approved, I'd have no hesitation recommending Michael.
Jianan and Zibo
Michael helped us completely change the way we approached property investing. He looked beyond just finding a loan and focused on creating the right structure to support our long-term wealth goals. His knowledge of lending, property investment, and the market gave us confidence in making important financial decisions. Michael explained everything clearly, provided honest advice, and always put our interests first. A broker who truly understands wealth creation, not just mortgages. Highly recommended for anyone looking to grow their property portfolio.
Shawn Shen
I originally contacted Michael for a mortgage, but ended up getting much more than that. He helped us use the cash in our offset account to pay down our principal home loan before refinancing and then released equity to purchase our first investment property. This meant we didn't need to use our own cash for the deposit, preserving the tax effectiveness of the investment debt structure. Michael also shared practical advice on selecting an investment property, including location, cash flow considerations, and long-term growth potential. The guidance was so valuable that I joked I owed him a $20,000 buyer's agent fee. If you're looking for a broker who understands both lending and property investing, Michael is the person to speak to. Professional, knowledgeable, and genuinely focused on helping clients build wealth.
Sue Murphy
Yes. MJ Finance and Advisory operates in accordance with Australian financial services and credit legislation. Mortgage brokers in Australia are required to hold an Australian Credit Licence or operate as a credit representative under an aggregator that holds such a licence. We are also bound by responsible lending obligations, which means we are required to make reasonable enquiries into your financial situation and ensure that any loan we recommend is not unsuitable for you. Additionally, we are members of an industry association and are required to meet ongoing professional development and compliance standards. You can have confidence that when you work with MJ Finance and Advisory, you are working with a professional who takes their obligations to clients seriously.
Yes, absolutely. Self-employed borrowers often face a different set of requirements when applying for finance compared to those who receive a regular salary. Lenders typically want to see evidence of consistent income over time, which may include tax returns, business financial statements, and notices of assessment from the Australian Taxation Office. At MJ Finance and Advisory, we have experience working with self-employed clients across a range of industries and understand the nuances involved in presenting a self-employed application in the strongest possible way. We will take the time to understand your business structure and income history so we can identify lenders whose criteria may be suited to your circumstances. Getting in touch early is always a good idea so we can plan accordingly.
In most cases, our mortgage broking services come at no direct cost to you as the borrower. This is because mortgage brokers are typically paid a commission by the lender once a loan settles. We are required by law to disclose any commissions or fees to you upfront, so you will always know exactly how we are remunerated before you proceed. In some circumstances, a fee may apply, and if that is the case, we will always be transparent about this from the outset. We believe you deserve to understand how the process works and how we are paid, so we make it a priority to have open and honest conversations about this with every client.
MJ Finance and Advisory assists clients with a broad range of lending needs. This includes home loans for owner-occupiers, investment property loans, refinancing existing loans, construction loans, and loans for self-employed borrowers. We also assist with commercial finance, equipment finance, and asset finance for business clients. Whether you are purchasing your first home, looking to grow a property portfolio, or seeking finance for your business, we can work with you to explore your options. Every client's situation is different, which is why we take a personalised approach rather than a one-size-fits-all solution. We encourage you to get in touch so we can understand what you are looking to achieve.
Coming prepared to your first appointment can help us get a clearer picture of your financial situation and make the most of your time together. Generally, it is helpful to have recent payslips or proof of income, your most recent tax returns if you are self-employed, bank statements from the past few months, details of any existing loans or debts, and a form of identification. If you are purchasing a property, any contracts or property details you have are also useful. Do not worry if you do not have everything ready straight away. Our first conversation is really about getting to know you and understanding your goals, and we can guide you on exactly what will be needed as we move forward.
When you go directly to a bank, you are only seeing what that one lender has to offer. At MJ Finance and Advisory, we have access to a wide panel of lenders, which means we can look across multiple options on your behalf. This gives you a broader view of what is available in the market rather than being limited to a single institution. We also work for you, not the lender. Our job is to understand your circumstances and help you find a loan structure that suits your situation. We are here to answer your questions, explain your options in plain language, and support you through what can be a significant financial decision.
Not at all. While MJ Finance and Advisory is based in Perth, we work with clients right across Western Australia and throughout Australia. Thanks to technology, we are able to meet with clients virtually, communicate via phone and email, and manage the entire process remotely if needed. Whether you are in regional WA, another state, or even overseas and looking to purchase property in Australia, we are well-equipped to assist you. We believe that where you live should not limit your access to quality finance and mortgage broking services, and we are committed to making the process as accessible as possible for all of our clients.
Refinancing means replacing your existing home loan or other loan with a new one, either with your current lender or a different one. People refinance for a variety of reasons, including wanting to access equity in their property, consolidate debts, change their loan structure, or simply review whether their current loan still suits their needs. Whether refinancing is worth considering depends entirely on your individual circumstances, including your current loan terms, your financial goals, and any costs involved in switching. At MJ Finance and Advisory, we can help you review your current situation and explain what refinancing could mean for you, without any pressure to make a decision. We recommend speaking with us before making any changes to your existing loan.
The timeline for a home loan application can vary depending on a number of factors, including the lender, the complexity of your financial situation, and how quickly documentation can be gathered and verified. In general terms, once a complete application is submitted to a lender, formal approval can take anywhere from a few days to a few weeks. At MJ Finance and Advisory, we work to keep the process moving as efficiently as possible by staying on top of your application and maintaining regular communication with the lender on your behalf. We will always keep you updated on where things are at and let you know if anything additional is required. Our goal is to make sure there are no unnecessary delays.
A mortgage broker acts as the go-between for you and a range of lenders, including banks, credit unions, and non-bank lenders. Rather than you having to approach each lender individually, a mortgage broker does the legwork on your behalf. At MJ Finance and Advisory, we take the time to understand your financial situation, your goals, and what you are hoping to achieve. From there, we research loan options across our panel of lenders and present you with options that may suit your needs. We also handle much of the paperwork and communication with lenders throughout the application process, keeping things moving and keeping you informed every step of the way.
MJ Finance and Advisory works with clients across Perth, WA, and Australia wide to access construction finance from lenders who understand the build process. Book an appointment with our team today.
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