Construction & Building Loans in Perth
Construction and building loans in Perth
A construction loan pays for a build in stages rather than as one lump sum. The lender releases "progress payments" to your builder as each stage finishes: slab, frame, lock-up, fixing and completion. During the build you usually pay interest only on the amount drawn so far, then the loan reverts to a normal principal and interest loan.
Brokers in this category handle owner-builders, knockdown rebuilds in suburbs like Nedlands or Scarborough, and house-and-land packages in growth areas such as Baldivis and Ellenbrook. Lenders differ a lot on how they treat them.
What to look for
- Experience with progress payment schedules and valuations on plans, not just established homes.
- Clear advice on how much deposit you need, and how land equity can count toward it.
- Knowledge of lenders' fixed-price contract rules, and how they handle variations and cost overruns.
- Willingness to explain fees, rates and what happens if the build runs late.
How our scoring helps
We compare all 230 businesses on the same published criteria, so you are not relying on advertising alone. See the ranked guide to mortgage brokers for the top picks, and read the methodology to see how scores are built.
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All construction & building loans, ranked by score and relevance
We found 233 businesses offering construction & building loans; 227 met the criteria for the scored directory. The order weighs each business's overall score by how much of its reviewed work is construction & building loans, so a lower-scored specialist can rank above a higher-scored generalist. Filter and sort below, or open the full map view.
Quote and contact requests you submit through our forms may be passed to one or more partner providers who can carry out the work, and we may receive a fee for those referrals. Rankings and scores are not influenced by referral fees and remain separate from our independent, published scoring method.
Common questions about construction & building loans
- How much does a broker charge for a construction loan?
- Most brokers are paid commission by the lender, so many charge you nothing upfront. Some charge a fee for complex or owner-builder deals. Ask for this in writing before you start. Lenders may charge their own fees, including valuation and progress inspection fees.
- How is a construction loan different from a normal home loan?
- Funds are paid out in stages as work is completed, and you pay interest only on what has been drawn. Lenders also want a fixed-price building contract, approved plans and builder details, and they often ask for a larger deposit.
- What should I expect during the process?
- Expect approval based on your finances plus the contract and plans, then a series of progress claims from your builder. The lender usually inspects or values the work before each payment. Delays or variations can need extra paperwork, so keep your broker updated.
- How do I judge a good construction loan broker?
- Check that they regularly arrange construction loans, can name several lenders suited to your build type, explain the drawdown schedule clearly, and compare total costs, not just the headline rate. Reviews and our scoring help here.
Guides to choosing construction & building loans
- How does a construction loan work in WA?
How a construction loan works in WA: progress payments by stage, interest only on drawn funds, the 6.5% deposit cap and what lenders need before you build.