Yes you can start building with a 5% deposit saved plus buying costs
Construction Loans Brisbane
Finance your build from land to handover, across Brisbane, the Gold Coast and the Sunshine Coast.
No obligation. Paid by the lender, not you.
5.0 Stars Based on 151 user reviews
How do construction loans work?
A construction loan pays out in stages as your build progresses. Not one lump sum like a standard home loan. You only pay interest on the portion that's actually been drawn, so early repayments stay small and grow as the builder gets closer to handover. Before approving the loan, the lender values the home based on the completed plans and specifications, not the unfinished build.
ASIC Moneysmart notes construction loans usually run interest-only during the build, then switch to principal and interest once the home's finished. That's what makes construction loans Brisbane borrowers use quite different from a normal home loan.
Talk to the experts
We have long term relationships with all major lenders across Brisbane, the Gold Coast and the Sunshine Coast, and with our expertise in banking policy, you can feel confident we'll get your construction loan approved.
This is why many people who have built their own homes have chosen us.
Best of all, we don’t charge you a fee to use our services as we are paid by the lender when your home loan settles.
The five progress draw stages, explained
Your builder gets paid as work is done, not before. At each stage, the lender sends a valuer to inspect the site, then releases the next payment. QBCC rules say progress payments must be relative to work actually completed. A contractor can't claim more than 50% of the contract price, including deposit, until at least 50% of the onsite work is done.
Here's how a typical progress draw loan flows through a build.
Percentages shift a bit by lender and by what's in your fixed-price building contract. The principle doesn't. Money's only released once the work in front of it is done and signed off. For the wider picture, we've mapped out building a house in Brisbane separately.
What you need to qualify for a construction loan
Lenders want the same evidence every time, no matter which builder you've picked.
- A signed fixed-price building contract, or an owner-builder permit if you're managing the build yourself
- Council-approved plans and specifications
- A construction loan deposit, usually 5-20% of the combined land and build cost
- Income and serviceability evidence (serviceability is just the lender's sum that says you can comfortably repay with a buffer built in)
- A licensed and insured builder
On the deposit side, QBCC caps what your builder can ask you for. Queensland building contracts over $20,000 have a maximum deposit of 5% of the contract price. Contracts from $3,301 to $19,999 sit at 10%, and $3,300 or less at 20%. That's separate from the deposit the lender needs from you. Best to work out your borrowing power before you sign anything, so the land price, build cost and grants all line up.
Most construction delays don't start with the builder. They start because the paperwork wasn't ready when the lender asked for it. Getting everything in place before you sign saves a lot of headaches later.
Owner-builder loan vs fixed-price contract loan
Both are legal in Queensland. They're not the same in the eyes of a lender.
If your project's worth more than $11,000 including GST, QBCC says you need an owner-builder permit to undertake or supervise the work yourself. You can only be issued one permit every 6 years, and the owner-builder notation stays on the property title for 7 years. Sell within 6 years of completion and the buyer has to be told in writing.
An owner builder loan is harder to secure than a standard construction loan. Most lenders prefer a fixed-price contract because the risk is easier to price. Here's how the two stack up.
What a construction loan actually costs
Construction loan rates are generally variable during the build phase, with the option to fix once the loan rolls to principal and interest at completion. Some lenders let you split at that point too.
On top of the rate, you'll cop valuation and inspection fees at each progress draw. Small on their own, but they add up over five stages, so factor them in. If your deposit's under 20% of the total land and build cost, Lenders Mortgage Insurance (LMI) will apply. LMI protects the lender, not you, and can be added to the loan.
Land and construction vs house and land package
First home buyer benefits when you build
Building a new home opens up grants and concessions that don't apply to existing properties.
The Queensland Revenue Office says the $30,000 First Home Owner Grant is available for contracts signed on or after 20 November 2023, or for owner-builders where foundations are laid on or after that date. The new home must be valued at less than $750,000, including land and any contract variations.
The First Home Guarantee lets eligible buyers build with a 5% deposit and no LMI. And for agreements entered into from 1 May 2025, no transfer duty is payable if the whole property is residential vacant land under the first home vacant land concession. The old $350,000 cap that ran from 9 June 2024 to 30 April 2025 no longer applies.
Why use a construction loan broker in Brisbane
Not every lender does construction loans. Even fewer accept owner-builders. That narrows your list fast.
We work across a panel of 50+ lenders and know which ones say yes to what. As a construction loan broker Brisbane borrowers have used since 2007, we structure the loan, prep the documents, and manage the progress draws with the builder and the valuer so payments land on time.
In 2025, 99.6% of the loans we submitted were approved. You deal directly with Victor Kalinowski, principal broker with 19+ years in lending, whether you're building in Brisbane, on the Gold Coast or the Sunshine Coast. We're your local Brisbane mortgage broker, and there's no fee to you. We're paid by the lender at settlement.
Don’t let these common misconceptions about construction loans stop you
Here’s the truth:
Yes you can use the $30,000 Qld First Home Buyers Grant to boost your deposit
No you don’t have to be in your job for at least 12 months
No, all your debts don’t need to be paid off to get your first construction loan
Our Process
Construction loan home builders guide
Here’s our simple process to get a construction loan so you can build your own home.
Download the step by step map below.
Preparation
We answer all your questions like how much deposit you need, your borrowing power and how to get multpile government grants and rebates like the $30,000 Qld First Home Buyers’ Grant. We’ll talk about...
Find a block of land
Once you've chosen a block of land and confirmed with the builder that your ideal home design suits the block, you will need to sign a contract of sale. It's worth organising a [house and pest inspect...
Choose home design and builder
After choosing your home design and builder, you’ll pay another initial, non-refundable deposit of up to $3,000, again using your own savings. The builder will then draw up your plans and a building c...
Start construction loan application process
This is where the money to build comes together! You will need to complete our simple online upload of your supporting paperwork like payslips, bank statements, contracts and quotes so we can understa...
Renovating an existing home instead of building new? See renovation loans. Need to buy your new build block before selling your current home? See bridging loans.
Download this simple step by step guide to building your own home.
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Testimonials
See what clients say about our service
5.0 Stars
Based on 151 user reviews
Rob & Laura
“Victor and the team went above and beyond to ensure we secured the property we wanted. They took the time to explain the steps involved during the buying process, their communication was excellent and knowledge of the market second to none. These guys were a pleasure to deal with and we would absolutely use again. Highly recommend.”
Dylan & Bree
“My fiancé and I are both self-employed and we were concerned about finding a lender who would cater to our situation. Thankfully, Victor and Christal made the entire financing process a breeze. They were extremely prompt with all communication, super professional, offered an enormous amount of industry knowledge, and most importantly, they helped us secure our family home...
Isabelle & Wayne
“Thank you Victor and the team you made our home loan journey a happy, stress free experience. We were updated at every step and Victor’s advice in the early stages was invaluable to us securing our loan. We need more community minded, person centred business’ like this. Would recommend Blackk Mortgage Brokers to anyone looking for genuine financial advice with no hidden agenda.”
Frequently Asked, Clearly Answered
Usually 5-20% of the combined land and build cost. With 5%, you'll typically pay LMI unless you qualify for the First Home Guarantee. A 20% deposit avoids LMI and opens up more lenders. Keep in mind the builder's deposit is separate. Under QBCC rules, that's capped at 5% for Queensland contracts over $20,000.
Yes, but the field of lenders is much smaller. Most cap the LVR at 60-80%, so you'll need a bigger deposit. You'll also need a valid QBCC owner-builder permit, which is required for projects over $11,000 including GST, plus detailed costings, quotes and insurance. Permit processing usually takes within 30 working days.
The builder invoices you at each stage. You forward the invoice to the lender, a valuer inspects the site to confirm the work's done, and the lender pays the builder directly. Under QBCC rules, no more than 50% of the contract price, including deposit, can be claimed until at least 50% of the onsite work is complete.
Build delays can happen due to weather, material shortages or council approvals. If the timeline changes, let your broker and lender know early. Most lenders can work with reasonable delays, but keeping everyone informed helps avoid issues with progress payments.
Your builder can't simply request the next payment because the date arrives. The lender releases each draw only after the required stage has been completed and, where required, inspected. If paperwork is missing or the work hasn't reached that milestone yet, payment can be delayed.
Yes, but any changes that increase the build cost usually need to be approved by the lender. It's best to speak with your broker before agreeing to contract variations, so you know how they'll affect your loan.
No, only on funds that have actually been drawn. Repayments start small after the first draw and grow as more of the loan is released at each stage. ASIC Moneysmart notes the loan is interest-only during construction, then converts to principal and interest at completion.
Yes, in most cases. QRO pays the FHOG for contracts signed on or after 20 November 2023 (or owner-builders where foundations are laid on or after that date), and the home must be valued under $750,000. Timing matters. The grant's usually paid at the first progress draw, so it can reduce how much of your own savings you need upfront.
On a fixed-price contract, variations have to be agreed and documented in writing. If you approve extras, you fund the difference. Either from savings or, if the lender agrees, a top-up. That's why we sanity-check the contract price against your borrowing power and buffer before you sign.
Most lenders run variable during the build, then let you fix once the loan rolls to principal and interest at handover. A few offer fixed rates earlier, but with less flexibility on draws. We'll match you to the structure that fits your timeline.
Two to four weeks from full application is typical, assuming plans, contract and income docs are ready. Getting home loan pre-approval before you sign a land contract shortens the run to formal approval and stops surprises later.
Work with Victor, Queensland's expert in home loan approvals
He’s here to guide you personally through every step, making sure your loan gets approved smoothly and stress-free.
