5.0 from 38 Reviews
Building a new home is one of the most exciting things you can do, and having the right construction finance in place from the start makes all the difference. At Lyan Finance, we help clients in Sydney and across 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 paperwork.
What Is a Construction Loan?
A construction loan is a specialised type of building loan designed to fund the construction of a new home or major renovation. Unlike a standard home loan, the funds are not released all at once. Instead, they are paid out in stages through a progress payment schedule, also known as a progressive drawdown. This means the lender releases money in instalments as each stage of the build is completed, such as the slab, frame, lock-up, fit-out, and practical completion.
One of the key advantages of this structure is that you only charge interest on the amount drawn down at any given time, rather than on the full loan amount. This can help manage your repayments during the build period, particularly when interest-only repayment options are available. Once construction is complete, the loan typically converts to a standard principal and interest home loan, sometimes referred to as a construction to permanent loan.
How the Progressive Drawing Process Works
Most lenders require a fixed price building contract before approving a construction loan. This contract outlines the total cost of the build and gives the lender confidence in the loan amount being requested. As your builder completes each stage, they will submit a progress payment claim. The lender then arranges a progress inspection before releasing the next instalment. This process, sometimes called a construction draw schedule, protects both you and the lender by ensuring funds are only released for work that has actually been completed.
A Progressive Drawing Fee may apply each time funds are drawn down, so it is worth understanding these costs upfront. Lyan Finance will walk you through what to expect from your lender so there are no surprises along the way.
Types of Construction Loans We Can Help With
At Lyan Finance, we work with a wide range of construction funding options to suit different situations. Whether you are looking at house and land packages, a land and build loan, a project home loan, or a fully custom design, we can help you find a loan structure that suits your circumstances. We also assist clients exploring owner builder finance, off the plan finance, spec home finance, and custom home finance.
For those looking to update an existing property, we can discuss options around a house renovation loan or home improvement loan, which may suit your needs depending on the scope of your project. Our team also has experience helping clients with renovation finance as a mortgage broker who understands the nuances of building projects.
Construction Loan Interest Rates and Key Considerations
The construction loan interest rate can differ from standard home loan rates, and it is important to understand what you are comparing. During the construction phase, most lenders offer interest-only repayments based on the amount drawn down. Once the build is complete and the loan converts, the full principal and interest repayments begin.
Lenders will also look at whether you have council approval and a development application in place, as these are typically required before a construction loan application can be formally assessed. You will generally need to commence building within a set period from the Disclosure Date, and your builder must be a registered builder recognised by the lender.
Additional payments may be possible depending on your loan structure, and some lenders allow flexibility with a cost plus contract arrangement. Lyan Finance will help you understand the terms that apply to your specific situation so you can make an informed decision.
Why Work With Lyan Finance?
Lyan Finance is committed to helping clients across Sydney and Australia find suitable construction finance solutions. We take the time to understand your goals, whether you are building your first home, investing in a new property, or looking for progress payment finance on a larger project. Our role as your mortgage broker is to compare options from a panel of banks and lenders, explain the construction loan application process clearly, and support you in finding a loan that aligns with your needs.
If you are ready to build your dream home or explore land and construction package options, speak with the team at Lyan Finance today. We are here to help you move forward with confidence.
Step 1: Initial Consultation
We start with a conversation. Whether you reach out by phone, email, or through our website, we take the time to understand your situation, your goals, and what you are hoping to achieve. There is no pressure and no jargon - just a friendly chat to get things moving in the right direction.
Step 2: Fact-Finding and Assessment
Next, we take a closer look at your financial position. We gather details about your income, expenses, assets, and liabilities. This helps us build a clear picture of your borrowing capacity and identify the right loan options for your needs.
Step 3: Research and Loan Comparison
With access to a wide panel of lenders, we do the legwork for you. We compare hundreds of loan products to find options that suit your goals, whether you are buying your first home, refinancing, or investing in property.
Step 4: Loan Recommendation
We present you with our recommended loan options in plain language. We walk you through the features, interest rates, fees, and repayment structures so you can make a confident and informed decision.
Step 5: Application Preparation
Once you are happy with your chosen loan, we prepare and submit your application on your behalf. We handle the paperwork, liaise with the lender, and make sure everything is in order to give your application the best chance of approval.
Step 6: Approval and Settlement
We keep you updated every step of the way through the approval process. Once your loan is approved, we work closely with your solicitor or conveyancer to ensure settlement goes smoothly and on time.
Step 7: Ongoing Support
Our relationship does not end at settlement. We stay in touch to make sure your loan continues to work for you. As your circumstances change or better options become available, we are here to review your loan and help you stay ahead.
Huge thanks to Andrew from Lyan Finance! He is such a friendly, professional, and fast-working broker. He made the whole process smooth and stress-free, and I couldn't be happier with the service I received. I'm completely satisfied and will definitely reach out to him again in the future!
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I highly recommend Andrew. I have had some complicated mortgage issues and Andrew has worked efficiently with my solicitor, bank and building company. He is very prompt at getting things done. He has made the whole process go along smoothly Andrew has been very patient with all my questions.
Rachel Newman
Andrew has been my broker for more than 10 years. I purchased my second property with his assistance and we have gone through a number of refinancing since then for my two properties. He has been very professional and helpful. My interest is very much looked after. I highly recommend him.
Reggie CRUZ
I had an exceptional experience with Andrew An. From start to finish, he demonstrated professionalism, expertise, and a genuine commitment to finding the best mortgage solution for me. His knowledge of the market was impressive, and he took the time to explain every detail clearly, making the entire process smooth and stress-free. He was always available to answer my questions and provided timely updates. Thanks to Andrew's hard work, I secured a fantastic mortgage rate and my home buying experience was a success. I highly recommend Andrew An to anyone looking for top-notch mortgage services!
Jackson H
The team at Lyan Finance is ready to help you explore your construction finance options. Book an appointment today and let us help you take the next step toward building your new home.
Contact UsGetting started is straightforward. You can reach out to us by phone, email, or through our website to book an initial consultation. This first conversation is a chance for us to learn about your situation, what you are hoping to achieve, and any questions you might have. There is no obligation involved in having that initial chat. From there, if you are ready to move forward, we will guide you through each step of the process, from gathering your documents through to submitting your application and beyond. At Lyan Finance, we believe that good communication and a clear process make a real difference, and we are here to support you every step of the way.
Lyan Finance can assist with a wide variety of lending needs. Whether you are purchasing your first home, upgrading to a larger property, investing in real estate, refinancing an existing loan, or looking at options for a construction loan, we are here to help. We also assist self-employed borrowers, who often face additional complexity when applying for finance. Our role is to understand your specific situation and connect you with lenders who have products suited to your needs. No two clients are the same, and we approach each situation individually rather than applying a one-size-fits-all solution.
A mortgage broker acts as the link between you and a range of lenders, including banks, credit unions, and other financial institutions. Rather than you having to contact each lender individually, a mortgage broker does that work on your behalf. At Lyan Finance, we take the time to understand your financial situation, your goals, and what you are looking for in a home loan. We then research options from our panel of lenders and present you with choices that suit your circumstances. We also handle much of the paperwork and communication with lenders throughout the application process, which can save you a significant amount of time and effort.
In most cases, there is no direct cost to you for using our mortgage broking services. Lyan Finance is typically paid a commission by the lender once your loan settles. We are required by law to disclose any commissions or fees to you upfront, so you will always know exactly how we are compensated before you proceed. This transparency is something we take seriously. If there are any situations where a fee may apply, we will always discuss this with you clearly and in advance. Our goal is to make sure you feel informed and comfortable at every step, with no surprises along the way.
While the exact documents required can vary depending on your situation and the lender, there are some common items that most lenders will ask for. These typically include proof of identity, recent payslips or evidence of income, tax returns (particularly for self-employed borrowers), bank statements, details of any existing debts or liabilities, and information about the property you are looking to purchase. At Lyan Finance, we will provide you with a clear checklist tailored to your circumstances so you know exactly what to gather. Being well-prepared with your documents from the beginning can help avoid unnecessary delays in the application process.
Yes, refinancing is one of the most common reasons people come to us. There are many reasons why someone might consider refinancing, such as wanting to access equity in their property, consolidating debts, changing their loan structure, or simply reviewing whether their current loan still suits their needs. At Lyan Finance, we can review your existing loan and compare it against options available through our lender panel. We will explain the potential costs involved in refinancing, such as exit fees or application fees, so you can make an informed decision. Refinancing is not always the right move for everyone, and we will always give you an honest assessment of your situation.
Not at all. While Lyan Finance is based in Sydney, we work with clients right across Australia. Thanks to phone, email, and video calls, we are able to provide the same level of personalised service to clients whether they are in Melbourne, Brisbane, Perth, or a regional area. The home loan process can be managed entirely remotely if that suits you, and many of our clients prefer the convenience of being able to communicate with us from wherever they are. If you are local to Sydney and would prefer a face-to-face meeting, we are happy to arrange that as well. We work around what suits you best.
Absolutely. Buying your first home is one of the biggest financial decisions you will ever make, and it can feel overwhelming when you are not sure where to start. At Lyan Finance, we work with first home buyers regularly and understand the questions and concerns that come with the process. We can walk you through how home loans work, explain the different loan types available, and help you understand what government grants or schemes you may be eligible to apply for, such as the First Home Owner Grant. We take the time to explain things in plain language so you feel confident and informed throughout the process.
The timeline for a home loan can vary depending on a number of factors, including the lender you apply with, the complexity of your financial situation, and how quickly documentation is provided. Generally speaking, once a full application is submitted with all required documents, lenders can take anywhere from a few days to a few weeks to issue a formal approval. At Lyan Finance, we work to keep the process moving as smoothly as possible by helping you prepare your documents correctly from the start and staying in regular contact with the lender on your behalf. We will keep you updated throughout so you always know where things stand.
When you go directly to a bank, you are only seeing what that one lender has to offer. At Lyan Finance, we work with a wide range of lenders, which means we can present you with a broader set of options to consider. We are not tied to any single institution, so our focus is on finding a loan that suits your needs rather than promoting one particular product. We also provide personalised guidance throughout the entire process, from your first enquiry through to settlement. For many people, having someone in their corner who understands the lending process and can explain things clearly makes a real difference.