A construction loan funds your build in stages rather than as a single advance — you draw (and pay interest) only on the funds used at each stage, and the loan converts to a standard product at completion. The structure matters: how the drawdowns are arranged, how the builder's contract is written, and (for SMSFs) how the borrowing rules apply to a build.
The stages of construction
Funds are released progressively as your build reaches each stage:
- Slab / base — site works, foundation, slab, initial plumbing and waterproofing.
- Frame — frame, roofing, trusses and windows.
- Lockup — external walls, windows and doors fitted (the home becomes lockable).
- Fit-out / fixing — internal fittings, plastering, cabinetry, plumbing and electrical.
- Completion — final works, finishing and handover.
How we structure it
We arrange construction finance across the lenders who write it, structured to their drawdown and valuation requirements rather than discovering them mid-build. For SMSF new-construction the rules are stricter — a single-contract, turnkey acquisition, not a two-contract build — and that is the AeFin specialisation (see SMSF + Construction).
Our register
AeFin provides credit assistance and structuring — general information, not personal financial product advice.
Related
General information only — not personal financial product or credit advice. AeFin is an Australian Credit Representative (CR 464548) of Finsure (ACL 384704).