Build Your Dream House

Check Out Home Construction Loans in Sydney

Why settle for a pre-owned home if you can build your dream house exactly the way you want it?

Buying a vacant lot and then constructing a new house from ground up is possible with a home construction loan.

Alternatively, some property investors also prefer to purchase land and then build new dwellings, rather than restoring or renovating older properties.

For that option, you may qualify for a construction home loan too.

How to Get a Home Loan to Build a House

On top of the usual loan requirements, banks and non-bank lenders in Australia will usually ask for the following to assess your eligibility for a home construction loan:

  • Design plans prepared by a licenced Australian architect
  • Approved Development Application (DA)
  • Contract with a licenced builder that contains a fixed price

TIP: some banks may approve the construction as an owner builder, but this usually comes with higher fees, more documentary requirements, and lower LVR (loan to value) ratio.

Getting loan approval for really run-down properties may be a bit more difficult as you have to show proof that you have the capacity to complete a full-scale renovation project.

How Much Money Can You Borrow For a Home Construction Loan

The amount of money you can get for a home construction loan will depend on the criteria set by your chosen lender, as well as your circumstances.

Most banks in Australia may approve you for up to 90% of the project cost depending on the nature of the required construction and the purpose.

Lenders are more likely to approve your construction loan if the property will be used for a rental business, as they are more confident that the recurring income can be used for the repayments.

Aesthetic projects such as landscaping can be included in the project but usually you need to work with a licenced builder.

REMINDER: The information indicated in this page is general advice and should not be considered as a final recommendation. It is best to work with a mortgage broker loan specialist who can assess your individual circumstances to develop a viable financial strategy.

To check your eligibility for a home construction loan, please call Shop Your Own Mortgage on 1 300 256 081 or send us an email to hello@syomortgage.com.au