If you’re planning to build your own home or take on a major renovation, a construction loan is a financing option designed specifically for your needs. But how do these loans work, and how are they different from traditional home loans?

Construction loans are released in progress payments — meaning funds are drawn down in stages based on your builder’s progress. These stages generally include:

  1. Land Purchase
  2. Slab/Foundation
  3. Frame
  4. Lock-up
  5. Fit-out
  6. Completion

This staged approach helps reduce the interest you pay, since you only pay interest on the amount that’s been released — not the full loan from day one.

Another benefit is that you’ll typically make interest-only payments during construction, which keeps repayments manageable until the project is complete.

However, construction loans can involve more paperwork and tighter timelines. That’s where working with an experienced broker becomes essential. At Reachable Finance, we coordinate between your lender, builder, and legal team to ensure everything runs smoothly.

We also help structure the loan in a way that aligns with your building schedule, financial situation, and long-term plans. Once construction is complete, the loan converts into a standard home loan with regular repayments.

If you’re ready to build your dream home or start a property development project, let us help you lay the foundation — with financing you can trust.