Construction loans in South West Sydney

Building new, rebuilding or adding a granny flat in South West Sydney? We'll set up a construction loan that keeps your build on track.

Building your dream home? Let's get the finance foundations right.

Building is exciting - and a little nerve-racking. There are plans, approvals, builders and budgets to juggle, and the loan works differently from a standard home loan.


At Infinity Mortgage Brokers, we help owners across Bankstown and South West Sydney set up construction finance that's clear from the first payment to the final handover.

How does a construction loan work?

Instead of receiving the full loan up front, your lender pays your builder in stages as the work is completed. You only pay interest on what's been drawn. We'll help you with:

  • What lenders need - a fixed price contract, approved plans and insurance
  • How progress payments are released at each stage
  • How the finished home is valued before it's built
  • Budgeting for interest during the build
  • Finance for knockdown rebuilds and granny flats
  • What happens when construction is complete

We'll explain the process to you and your builder before work starts, so nobody is left waiting on a payment.

What can go wrong with a construction loan?

Most problems come from surprises - a variation that wasn't budgeted, a delay, or a valuation that comes in lower than the build cost.


Good planning takes care of most of it. We build a buffer into your budget and choose a lender that suits your type of build, whether that's a new home in Edmondson Park or a rebuild in Revesby.

How Infinity Mortgage Brokers can help

We keep construction finance simple for South West Sydney owners. Here's what you get with us:

  • A clear budget, including a realistic buffer
  • Lenders compared on rate and on how they handle progress payments
  • Help with the paperwork lenders ask for
  • A broker who talks to your builder so you don't have to play messenger
  • Support from slab to settlement

You focus on the build. We'll look after the loan.

Ready to break ground?

Let's chat! Schedule a free introductory call with us now.

  • How are construction loan progress payments released?

    Construction loan progress payments are released in instalments as the build reaches set milestones, and each instalment is paid directly to your builder. You pay interest only on what has been drawn.


    The usual milestones

    • Deposit

    • Slab or base

    • Frame

    • Lock up, once external walls, windows and doors are fitted

    • Fit out or fixing

    • Practical completion


    What triggers each payment


    The builder issues an invoice for the completed stage and you sign an authority to pay. The lender may send a valuer to inspect before releasing the money.


    When the build is finished


    After the final payment, the loan switches to ordinary principal and interest repayments.


    Avoiding friction with your builder


    Slow progress payments cause more friction between owners and builders than almost anything else. Infinity Mortgage Brokers confirms the process with both of you before work begins, whether you are building in Edmondson Park or rebuilding in Revesby. More detail is in our guide to construction loans.

  • What do lenders require for a construction loan in South West Sydney?

    For a construction loan in South West Sydney, lenders require a signed fixed price contract with a licensed builder, approved plans, and the usual evidence of income and savings. The full list:

    • A fixed price building contract signed by you and the builder

    • Approved plans and specifications

    • Development consent and a construction certificate, or a complying development certificate

    • The builder's licence, Home Building Compensation cover and insurance details

    • Proof of your deposit and any funds you are contributing

    • Standard income, expense and debt documents


    Valuation


    The valuer estimates what the finished home will be worth, based on the plans and contract. This is called an as if complete valuation.


    New estates


    In release areas such as Edmondson Park, land is often sold before the title is registered. A lender cannot settle until registration, so approvals sometimes need extending.


    Owner builders and cost plus contracts


    Most lenders avoid both, and those that lend want a larger deposit. Raise it early.


    Where to start


    Infinity Mortgage Brokers plans for these issues from the start. Our construction loans guide covers deposits, and first home builders should also see our first home buyers service.

  • What happens to my construction loan if the build runs over budget or late?

    If your build runs over budget, the construction loan still covers only the contract price. Any extra cost is yours to fund, or you apply to increase the loan, which means a new assessment.


    Variations


    Changes made after signing are the main reason builds exceed budget. Upgraded finishes, extra site works and design changes all sit outside the approved amount.


    Delays


    Lenders set a period in which construction must be finished, commonly 12 to 24 months. Run past it and you may need an extension. Interest keeps accruing on the amount drawn, so lost weeks cost real money.


    If the builder cannot finish


    The outcome depends on the stage reached and on the Home Building Compensation cover taken out for the job. Early advice matters.


    Two habits that help


    Keep a cash contingency outside the loan, and finalise your selections before the contract is signed.


    Support during the build


    Infinity Mortgage Brokers allows for a buffer when setting budgets for South West Sydney builds. If repayments start to bite, speak to us quickly and read our guide for people struggling with mortgage payments.

  • Will a construction loan cover a knockdown rebuild or a sloping block?

    Yes, a construction loan can cover both a knockdown rebuild and a build on a sloping block. Each has a cost trap that is better found before you sign a building contract.


    Knockdown rebuild


    Knockdown rebuilds are common on the older fibro and brick homes of Bass Hill and Revesby. The lender values the land plus the new dwelling, and your budget has to include demolition. Any existing mortgage is normally rolled into the construction loan.


    Sloping and rocky blocks


    These are typical of river side suburbs such as Illawong and Alfords Point. Rock excavation, retaining walls, piering and difficult access can add heavily to the build cost. The valuer compares the finished home with nearby sales, which may not reflect what you spent below ground. If the valuation falls short, you fund the difference.


    Flood and bushfire controls


    Sites affected by either may need raised floor levels, specific materials or extra reports. Cost and lender appetite both change.


    Check before you commit


    Infinity Mortgage Brokers in Bankstown checks your available equity and lender appetite before you sign. Adding a second dwelling or building a duplex? See our guide to dual occupancy loans.