construction project

Reservoir Finance's COMPLETE Guide to Construction Loans

It is no secret that many Australians want to build their dream home. You get to choose everything! From the floor plan, to the finishings, to styling it, and landscaping it, not to mention buying the colour perfect furniture to go with it all. It is going to cost a lot of money!

One of the main challenges Australians face is financing the entire project. Most have just spent their savings on buying the land to build it on. How can you get the money to fund the build? How do construction loans even work? What jargon do I need to know?

At Reservoir Finance, we have had many clients ask us the same questions over and over again. We put this guide together to help them and you. We even created our own construction calculator because we weren’t happy with all the ones out there! Let us know what you think!

Reservoir Finance is an independent mortgage broker committed to helping Australians achieve their personal and financial dreams sustainably. You can learn more about our values here. (PS: if you do choose to work with us, you’ll be in good hands! We do not charge upfront (or any) fees to 99% of our clients!)

How do construction loans work?

You want to start here. Learn the process of how lenders and builders work together in order to build your dream home or complete the major renovation project.

Understand key terms and concepts such as stages of construction, progress payments and fixed price building contracts.

Construction Loan Contracts

There are two different types of contracts. Only is definitely more favourable for lenders. Make sure you organise the right type of contract with your licensed builder or otherwise you will be in a world of pain!

Construction Loan Calculator

We’re quite disappointed with all the construction calculators that you can find online. They are confusing and most people do not understand how to use them. We have created our own easy to use construction loan calculator that will give you all the critical financial information you need to know when taking out a construction loan.

Construction Loans for Owner Builders

What if you want to do the build yourself because you are a handy DIY person? There are also loans available to help owner builders! There are, however, a specific set of lending criteria that must be adhered to. Otherwise getting a construction loan for owner builders will be difficult.

BEWARE of split contracts!

If you are buying a house and land package, you need to pay attention! Split contracts can be very dangerous for you! Learn why in our article dedicated to warning you about the dangers of split contracts.

Ready to start building or renovating? Need help with a construction loan?

It is exciting when you have the opportunity to build or renovate your dream home! Reservoir Finance would love to help you and make your journey as smooth as possible with everything related to finance and funding.

Reservoir Finance is an independent (not owned by a bank or lender) mortgage broker based in Sydney, but we service Australians everywhere. We pride ourselves in being values based with a mantra of responsible borrowing (don’t get it confused with responsible lending by the media). This puts us above many providers as we seek your best interests first, before profit.

We are so confident that we do not charge upfront (or any) fees to 99% of our clients. We even offer a free strategy session where we help analyse your financial situation, your goals and provide you with recommendations on how to achieve them. It is obligation free! If you have any questions or are keen to work with us, contact us below or feel free to call us on (02) 8288 9123. We would love to help you out!


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