5.0 from 2 Reviews
Building a new home is one of the most exciting things you can do, and having the right construction loan in place makes all the difference. At Mprove Finance, we help clients across Perth and greater Australia access Construction Loan options from banks and lenders across Australia, so you can focus on bringing your vision to life rather than worrying about the finance side of things.
What Is a Construction Loan?
A construction loan is a type of building loan specifically designed for people who are building a new home rather than buying an existing one. Unlike a standard home loan, a construction loan releases funds in stages as your build progresses, rather than as a lump sum upfront. This staged release is known as a progressive drawdown, and it means you only charge interest on the amount drawn down at any given time, which can help keep your repayments lower during the build period. Many lenders also offer interest-only repayment options during construction, which gives you breathing room while your home is being built.
How the Progressive Payment Schedule Works
When you take out a construction loan, your lender will typically follow a progress payment schedule that aligns with key stages of your build. These stages generally include things like the slab being laid, the frame going up, lock-up, fit-out, and practical completion. At each stage, a progress inspection is carried out before the next instalment is released. This structure means your builder, along with any tradespeople such as plumbers and electricians, can be paid at the right time through what is known as a construction draw schedule. It keeps the build moving and ensures funds are used for their intended purpose.
Types of Construction Finance We Can Help With
At Mprove Finance, we work with a wide range of construction funding scenarios. Whether you are looking at a land and construction package, a house and land package, a custom home finance solution, or a project home loan, we can help you find a loan structure that suits your situation. We also assist clients who are looking at owner builder finance, off the plan finance, spec home finance, or a house renovation loan for those wanting to improve an existing property. If you are renovating rather than building from scratch, we can also look at home improvement loan options and renovation finance to help you get the work done.
Key Things to Know About Construction Loans
There are a few important things to be aware of when it comes to construction finance. Most lenders require you to have a fixed price building contract in place with a registered builder before your construction loan application can be approved. This gives the lender confidence in the total loan amount and the scope of the project. You will also generally need to have your council plans approved and your development application finalised before funds can be released. Lenders will also typically require that you commence building within a set period from the Disclosure Date, so it is important to have your timelines sorted before you apply.
Some lenders charge a Progressive Drawing Fee each time a progress payment is made, so it is worth factoring that into your overall budget. If you are working with a cost plus contract rather than a fixed price contract, your lender options may be more limited, so it pays to understand your contract type before you start looking at construction loan interest rate comparisons.
Why Work With Mprove Finance?
Mprove Finance takes the time to understand your build, your budget, and your goals before recommending any construction finance option. We look at your full picture, including your land and build loan needs, your income, and your existing financial commitments, to help you find a loan structure that works for you. We work with banks and lenders across Australia, which means we can compare a broad range of options rather than being limited to one lender's products.
Whether you are building your first home, a custom design property, or looking at progress payment finance for a renovation, Mprove Finance is here to help clients in Perth and across Australia make sense of their construction loan options. We are proud to support clients in the wider Perth region as they take the step toward building new home finance that works for their life. If you are also considering your investment loan options alongside your build, we can help you look at the bigger picture too.
Step 1: Initial Conversation
We start with a no-obligation chat to understand what you are looking to achieve. Whether you are buying your first home, investing in property, or refinancing an existing loan, this is your chance to ask questions and for us to get a feel for your situation.
Step 2: Fact Find and Assessment
We take a closer look at your financial position. This includes your income, expenses, assets, and liabilities. The more we understand about your circumstances, the better placed we are to find a solution that works for you.
Step 3: Research and Strategy
Using our panel of lenders, we research the market to find loan options that suit your needs and goals. We do not just look at interest rates. We consider loan features, flexibility, and overall value to make sure the solution fits your life.
Step 4: Recommendation
We present our recommendation in plain language. No jargon, no confusion. We walk you through the options, explain the pros and cons, and answer any questions so you can make a confident, informed decision.
Step 5: Application Lodgement
Once you are happy to proceed, we prepare and lodge your application on your behalf. We handle the paperwork and liaise directly with the lender to keep things moving as smoothly as possible.
Step 6: Approval and Settlement
We keep you updated every step of the way through to formal approval and settlement. If the lender needs anything further, we manage that communication so you are not left chasing answers.
Step 7: Ongoing Support
Our relationship does not end at settlement. We check in regularly to make sure your loan is still working for you. As your circumstances change, we are here to review your finance and help you make the most of every opportunity.
At Mprove Finance, we believe the right guidance makes all the difference. Our process is designed to be clear, efficient, and centred entirely around you.
Aine is incredible. She went into bat with me to ensure the lender was understanding my complex pay structure. She went above and beyond, as initially they were not assessing my income appropriately. Her knowledge, care and relentless effort was amazing, she ensured I ended up with the best possible deal. Her follow up and attention to detail was amazing. Would recommend her to anyone needing support with their banking
Chelsea Selvidge
Aine is so friendly, knowledgeable and genuinely lovely to deal with. We're really grateful to have her on our side as we work through restructuring our home loan and potentially refinancing. We trust her advice and really appreciate the care and support she's given us. She's an absolute pleasure to work with!
Emily Jeavons
Not at all. While Mprove Finance is proudly based in Perth and serves clients across the greater Perth area, we also work with clients right across Australia. Thanks to phone, email, and video conferencing, we can provide the same high level of service whether you are in Fremantle, Brisbane, Melbourne, or anywhere else in the country. Distance is not a barrier to getting quality support with your finance needs. If you prefer to meet in person and you are local to Perth, we are happy to arrange that too. We want the experience to work for you, regardless of where you are located.
Getting started is very straightforward. You can reach out to us by phone, email, or through our website to book an initial consultation. This first conversation is all about understanding your situation, what you are hoping to achieve, and answering any questions you might have. There is no pressure and no obligation involved in having that initial chat. From there, if you decide you would like to move forward, we will outline the next steps and what we will need from you to get the process underway. Whether you are just starting to think about your options or you are ready to move quickly, Mprove Finance is here to help you take that next step with confidence.
In most cases, Mprove Finance is paid a commission by the lender once your loan settles. This means you typically do not pay us directly for our broking services. We are required by law to be transparent about how we are paid, and we will always disclose any commissions or fees upfront before you commit to anything. Our obligation is to act in your best interests, which is a legal requirement under Australian credit law. If there are any situations where a fee may apply, we will discuss this with you clearly and openly before any work begins, so there are no surprises along the way.
Having a less-than-perfect credit history does not automatically mean you are out of options. There are lenders on our panel who specialise in working with clients who have had credit challenges in the past, such as defaults, late payments, or previous bankruptcies. At Mprove Finance, we take the time to understand your full situation before exploring what may be available to you. We will always be honest with you about your options and what is realistic given your circumstances. We do not make promises about outcomes, but we do commit to doing the work to find out what is possible and presenting you with a clear picture of your choices.
When you go directly to a bank, you are only seeing what that one lender has to offer. A mortgage broker like Mprove Finance has access to a wide panel of lenders, which means we can look across multiple options to find one that suits your specific situation. We also understand how different lenders assess applications, which can be valuable when it comes to putting your application together in the strongest possible way. Beyond that, we handle the communication and paperwork on your behalf, saving you considerable time and effort. Our job is to work for you, not for the lender, and that focus on your needs is what sets the broker experience apart.
While the exact documents required can vary depending on your situation and the lender, there are some common items you will typically need to have ready. These usually include proof of identity such as a passport or driver's licence, recent payslips or tax returns if you are self-employed, bank statements, details of any existing debts or liabilities, and information about the property you are looking to purchase. At Mprove Finance, we will walk you through exactly what is needed for your specific application so you are not left guessing. Being well-prepared with your documents upfront can help avoid unnecessary delays in the process.
Mprove Finance works across a broad range of lending needs. Whether you are looking to purchase your first home, refinance an existing loan, invest in property, or access finance for a vehicle or business purpose, we can help you explore your options. We work with a wide panel of lenders including major banks, credit unions, and specialist lenders, which means we can look at solutions that suit a variety of circumstances. Every client's situation is different, so we take the time to understand what you are trying to achieve before recommending any particular direction. Our goal is to match you with a loan structure that genuinely fits your needs.
A mortgage broker acts as the go-between for you and a range of lenders. Rather than you having to approach each bank or lender individually, a broker does that legwork on your behalf. At Mprove Finance, we assess your situation, help you understand your options, and work with our panel of lenders to find a loan structure that suits your needs and goals. We handle the paperwork, communicate with lenders, and guide you through each step of the process from your initial enquiry right through to settlement. Our role is to make the whole experience as clear and straightforward as possible, so you always know where things stand.
The timeline for a home loan can vary depending on a number of factors, including the lender you go with, the complexity of your application, and how quickly all the required documents can be gathered. Generally speaking, getting pre-approval can take anywhere from a few days to a couple of weeks, while full loan approval after finding a property can take a similar amount of time. At Mprove Finance, we work to keep things moving as efficiently as possible by staying on top of your application and communicating with lenders on your behalf. We will always keep you informed so you have a clear picture of where things are at.
Pre-approval, sometimes called conditional approval, is an indication from a lender that they are willing to lend you up to a certain amount, subject to conditions being met. It is a useful step when you are searching for a property because it gives you a clearer idea of your borrowing capacity and shows sellers you are a serious buyer. Full approval, on the other hand, happens once you have found a property and the lender has assessed all the details including a valuation of the property. At Mprove Finance, we can help you understand what each stage means for your situation and what to expect as you move through the process.
If you are thinking about building a new home or starting a renovation project, Mprove Finance is here to help you understand your construction loan options. Book an appointment with our team today and let us help you find the right construction finance solution.
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