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Building / Renovating

Several lenders are well set up to support borrowers wishing to build or renovate a dwelling.  Typically, these are called construction loans although a normal home loan can be sued for smaller projects.  Construction loans involve a number of drawdowns on your loan to pay the builder as the project unfolds.

These loans are more complicated, and it is critical that sufficient finance is approved, and the process is managed.  A good mortgage broking team can support you from start to finish on this process and will be an invaluable partner in the project.


To help you better understand your options we have put together some FAQs to help answer many of your questions. If your question is not answered below please contact us so we can answer it for you.

  • When should I borrow funds for a Home Renovation?

    It is best to obtain the money before any changes are made to the property.  The first step in considering a renovation that will require finance is to understand how much you can borrow, what documentation you will need to supply, eg a quote from the builder, and the sequencing of the finance, renovation works etc. 

  • What information will lenders want to secure a Home Renovation loan?

    Often a lender will require a Fixed Price Builders Contract, Plans and Specifications of the works from the builder, although these may not be needed up front and for non-structural changes may not be needed at all. 

  • How should I use Home Renovation funds?

    With a construction loan, the bank will release a portion of the funds each time the builder provides an invoice that you agree should be paid.  The bank pays the builder direct, the money does not go to the borrower.

  • What types of Home Renovation or Owner Builder Loans are available?

    Quite a few lenders provide construction loans, however only a couple offer loans for Owner Builders.  Some lenders have very clunky processes or will openly tell mortgage brokers, we are not good at construction loans and so are best avoided.  It is best to seek advice from a mortgage broker on the best options for your situation as there are often more than might first appear.

  • Do I need a builders’ permit to do home renovations?

Need more information?

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