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Construction Loans on the Gold Coast
Create your future home with a construction loan
Building your own home on the Gold Coast is an exciting milestone, but the finance behind it works differently from a standard mortgage. A construction home loan releases funds to your builder in stages as the build progresses, and getting that structure right from the start makes the whole process feel far more manageable.
At Go Mortgage, we specialise in construction home loans, helping you access progressive drawdowns, keep interest costs low along the way, and secure finance that’s ready to go before you sign a building contract.
Whether you’re building your first home, a knock-down rebuild, or an investment property, our tailored approach to construction loans on the Gold Coast ensures you’re set up for a smooth build from day one.
As Gold Coast brokers working across our whole lender panel from Arundel, that’s exactly what we’re here for.
Let’s Make Your Homeownership Goals Happen!
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What is a House Construction Loan, and How is it Different from a Standard Home Loan?
A construction home loan releases funds progressively as your build reaches agreed milestones, rather than paying the full amount at settlement like a standard home loan. You pay interest only on funds drawn so far, with the loan converting to standard principal-and-interest repayments once the build is complete.
This progressive structure is what sets a construction mortgage apart from a typical purchase loan, and it’s designed to match how builders are actually paid throughout a project.
How Progress Payments Work – The Stages of a Build
|
Stage |
Approx. % of contract |
What happens |
|---|---|---|
|
Deposit |
5% |
Contract signed, plans finalised |
|
Base/slab |
10–15% |
Foundation and slab poured |
|
Frame |
15–20% |
Frame and roof trusses erected |
|
Lock-up |
20–25% |
External walls, windows and doors installed |
|
Fit-out |
20–25% |
Kitchen, bathrooms, plumbing and electrical |
|
Completion |
5–10% |
Final inspection and handover |
*Stage percentages are indicative and vary by builder and contract.
Each stage is paid to your builder only once it’s finished and inspected, and your lender typically arranges a valuer to confirm the work before releasing funds. Because you’re only charged interest on money that’s actually been drawn, repayments during the build are usually far lower than they will be once construction wraps up and the loan converts to principal and interest.
What You Can Use a House Construction Loan For
A house construction loan can fund a new build, a house-and-land package, a major structural renovation, an investment build, or a knock-down rebuild. Owner-builder projects are possible too, though fewer lenders offer them and the approval process is generally stricter.
If you’re planning to demolish and rebuild rather than build on vacant land, read more about knock down rebuild loans here. And if your project is more cosmetic than structural, a construction loan usually isn’t the right tool; using equity to renovate your existing home loan is often the simpler, cheaper route for smaller upgrades.
How Much Can You Borrow? Deposit, LVR and ‘As If Complete’ Valuations
Lenders assess a construction home loan against an “as if complete” valuation – essentially, your land value plus your fixed-price building contract, giving the lender an estimate of what the finished property will be worth. Most will lend up to around 80% of this value, or up to roughly 95% with the lender’s mortgage insurance.
If you already own the land or have equity in another property, that can reduce or remove the cash deposit you need. First home buyers may also be eligible for the First Home Owner Grant, typically released once the slab stage is complete, though eligibility varies by state.
Find out how much you can borrow with our calculator or estimate your repayments once you know your likely loan amount.
What Your Lender and Builder Need
-
A signed fixed-price building contract with a progress-payment schedule -
Council-approved plans
-
Your builder’s licence details
-
Builder insurances – home warranty and public liability
-
Home/building insurance in place before the final drawdown
-
Construction generally needs to start within about 12 months of approval and finish within around 24 months, and approvals can expire after roughly 12 months if the build hasn’t started
Costs, Risks and Contingencies
-
Progress-draw, inspection and valuation fees are charged throughout the build
-
The biggest risks are cost overruns, builder delays and builder insolvency
-
A fixed-price contract plus a 10–15% contingency buffer helps protect against the unexpected
-
Budget for rent or holding costs if you won’t be living in the property during construction
How Our Gold Coast Construction Loan Brokers Help
A construction loan broker’s job starts well before you sign anything. Here’s how we approach it:
- Get you pre-approved before you sign the building contract – the single biggest mistake we see is signing first and financing second
- Check your builder’s contract meets lender criteria
- Arrange the “as if complete” valuation
- Compare construction loan lenders across our whole panel
- Coordinate progress draws between your builder, lender and valuer
- Manage the switch to a standard home loan once the build is complete
There’s no cost to work with us, and our team is local, named and based right here on the Gold Coast. Whether you’re building your first home or growing a portfolio with a property investment broker, we handle construction loans on the Gold Coast every week.
Ready to Start Building?
If you’re planning a new build or knock-down rebuild on the Gold Coast, getting a construction loan sorted before you sign a building contract puts you in a much stronger position.
Call us on 1300 855 244 to get started with Gold Coast Mortgage Broker for a free, no-obligation chat.
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