30+ Lenders Compared
Not just one bank.
26 Years Experience
Banking & finance industry
MFAA Member
Industry accredited
Eastern Suburbs Specialists
Randwick, Bondi, Maroubra & more
BUILDING OR REBUILDING? FINANCE STRUCTURED FOR EVERY STAGE
Whether you're building on vacant land, planning a knockdown rebuild in the Eastern Suburbs, or renovating an existing property, construction finance works differently to a standard home loan. As your construction mortgage broker in Sydney, we structure your loan around your build - not the other way around.
Prefer to call? Reach Lenny directly: 0438 115 643
Construction Loan Sydney: How Construction Loans Work
A construction loan uses progressive drawdown - funds are released in stages as your build hits each milestone, tied to progress payments against your building contract. You pay interest only repayment on what's actually drawn down, then the loan automatically converts to principal and interest once construction is complete.
Want the full breakdown of how construction loans work, including comparison rates and fees?
Read our Construction & Renovation Loans guide.
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Financing a Knockdown Rebuild Project
A knockdown rebuild loan finances demolishing an existing property and building a new, property generally combining your existing mortgage with new construction finance for the rebuild.
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A few things that make a knockdown rebuild project different from a standard build:
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Knockdown rebuild costs - demolition, site prep, and sometimes asbestos removal or heritage overlays in older Eastern Suburbs pockets
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Your land value is factored into the lender's security assessment alongside the completed home's projected value - which is often what makes the numbers work
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Coordinating your existing mortgage with the new facility is a real structuring exercise, worth getting right before you commit
What Lenders Need From Your Builder
Lenders require a fixed-price building contract from a licensed builder and council-approved plans for your home design before releasing funds. Budget a contingency buffer on top of the contract price too - variations during a build are common, and lenders won't fund them automatically.
Budgeting Beyond the Build Cost
For a knockdown rebuild on land you already own, stamp duty was generally already paid when you bought the existing property. Buying vacant land to build on triggers stamp duty on that land purchase. Either way, budget for demolition, site costs, council fees, and a contingency buffer alongside the building contract price.
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Not sure what your total build budget should include?
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Building as an Investor, or While Self-Employed
Adding to an investment property portfolio, self-employed and building, or this being your first home? Each changes how the loan process works - worth a quick chat before you lock anything in.
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Ready to Talk Strategy?
Before you sign a building contract, it's worth understanding what you can actually borrow. Book a free, no-obligation strategy chat with Lenny.