Build, renovate, or extend — financed properly.
Danny structures construction lending for Bulimba renovations and new builds — progress draws aligned to the builder's schedule, lender selection that matches the project type.
- $340Msettled
- 13+ yearsbroking
- 80+lender panel
Construction lending is a different animal from a standard purchase loan. The funds release in stages tied to a builder's contract, the valuation runs twice (as-is and on-completion), and lender appetite varies sharply by project type. Danny matches the project to the lender whose policy fits.
Progress draws and the builder's contract
Lenders release construction funds against a fixed-price builder contract in standard stages — typically deposit, base, frame, lockup, fixing, and completion. Each draw is paid against an inspection or invoice, and the borrower usually pays interest-only on funds drawn until completion.
Danny structures the loan so progress payments align with the builder's schedule and the borrower's cash-flow — and reads the lender's construction-stage policy in advance, so a draw doesn't get held up at the lockup stage when the builder needs it.
Renovations on a Queenslander
Bulimba and the inner-east are full of pre-1946 Queenslanders sitting under character or heritage overlays. Council approvals, structural reports, and engineering certificates are part of the lender file, and the on-completion valuation has to support the post-renovation debt level.
For larger renovations on a Queenslander — raising, building under, rear extension, full re-stump — equity release against the existing property is sometimes a cleaner structure than a formal construction loan. Danny runs both options before the file is committed.
Owner-builder lending
A small number of lenders fund owner-builder projects, typically with tighter LVR limits, longer turnaround times, and stricter documentation. Most major banks decline owner-builder applications outright. For borrowers who hold a Queensland Building and Construction Commission owner-builder permit, lender selection is the decisive factor.
Knock-down rebuild
Knock-down rebuilds combine a settlement (or refinance), a demolition stage, and a construction loan — often funded by the same lender but with policy that varies depending on whether the borrower already owns the land. The valuation logic, council demolition approval, and asbestos-clearance documentation each affect the lender file.
Frequently asked questions
Direct answers to questions Danny hears most often from Bulimba renovators and builders. General information only — nothing here is personal credit advice.
What is a construction loan, and how does it differ from a standard home loan?
A construction loan releases funds in progress payments tied to a builder's contract — typically deposit, base, frame, lockup, fixing, and completion stages — rather than as a single lump sum at settlement. The borrower usually pays interest-only on funds drawn during the build, then converts to a standard principal-and-interest home loan at completion.
How are progress payments structured?
Standard fixed-price builder contracts in Queensland follow the QBCC progress-payment schedule: deposit (around 5%), base (10%), frame (15%), lockup (35%), fixing (20%), and practical completion (15%). Each draw is paid by the lender against an inspection or invoice. Owner-builder and renovation contracts may use different stage breakdowns, but the principle is the same.
Can a Queenslander be renovated under a character or heritage overlay in Bulimba?
Yes — most pre-1946 Queenslanders sit under a Brisbane City Council character overlay, with renovations subject to council approval. Heritage-listed properties carry tighter restrictions. The lender typically wants to see council approvals, structural certificates, and engineering reports as part of the construction loan file. Danny can flag what each lender on the panel typically asks for.
Do lenders fund owner-builder projects?
A small number do. Owner-builder loans typically carry tighter loan-to-value limits (often 60–70%), longer assessment turnarounds, and stricter documentation including a Queensland Building and Construction Commission owner-builder permit. Most major banks decline owner-builder applications outright. Lender selection is the decisive factor and is best done before signing the build contract.
What is the difference between a construction loan and an equity release for a renovation?
A formal construction loan suits new builds and substantial renovations with a fixed-price builder contract — the lender controls progress draws against the build schedule. An equity release against the existing property is simpler, gives the borrower direct control of the funds, and suits cosmetic renovations or owner-managed projects. Below around $200,000 in scope, equity release is usually the cleaner structure.
How long does a construction loan take to set up?
For a standard build with a fixed-price contract, formal approval typically takes three to six weeks once the full lender file is submitted — including the contract, council approvals, plans and specifications, and the as-is plus on-completion valuations. Owner-builder, renovation, and complex-overlay files take longer. Danny maps the timeline to the builder's expected start date so the construction-stage funds are ready when needed.
What happens if the build runs over the contract price?
Variations and overruns are common. Lenders fund variations either by extending the construction loan (subject to a fresh valuation and serviceability check) or, more commonly, by leaving the variation for the borrower to fund from cash or post-completion equity. A 10–15% contingency buffer above the contract price, held in cash, is the conservative position most builders and brokers recommend.
Prefer to talk it through?
Or book a coffee with Danny instead.
Thirty minutes on Oxford Street, Bulimba — or by video. No pressure, no spreadsheet homework before you arrive.