Why Construction Loans Need Specialist Knowledge
Construction loans work differently because you generally receive the approved funds in stages. For many construction loans, lenders release funds progressively as the build reaches agreed stages rather than providing the full construction amount upfront. Interest is generally charged on the amount drawn from the facility at that point, which means as further stages are completed and more funds are released, the drawn balance increases.
So, the loan application also needs more information about the proposed build. Depending on the project and lender, this can include a fixed-price contract and detailed construction documents. However, lender requirements can vary, and lending guidelines can also change.
An experienced construction mortgage broker can identify these requirements early and help prepare the deal for assessment. Tesoro Financial has worked on construction financing for years, so our team understands the information specialist lenders expect when considering a loan approval.
Our construction finance process has four key stages. Here is what you can expect when you work with us.
Residential Construction and Renovation Loans
Building a new home or undertaking a major renovation
If you are building a new home, a construction loan can release funds progressively as work advances. Interest is generally calculated on the amount drawn rather than the fully approved construction facility. Construction finance may also suit substantial renovations or extensions. For new builds, major renovations and extensions, lenders may release funds at agreed construction stages in line with the builder's payment schedule.
Your builder, for instance, may request payment after reaching an agreed stage of construction. The lender assesses the relevant requirements before releasing the next drawdown, which continues through the required construction milestones until the build reaches completion.
For many residential construction loans, lenders require a fixed-price building contract as part of the application. Requirements can vary depending on the lender, project, and loan structure. Other documents may also be required based on the lender and your project. We can explain what you need to prepare before the application moves forward.
How the Construction Loan Process Works
1.
Tell Us About the Project
We start by discussing what you plan to build and the finance you need. You can talk us through the project, your expected timeline, and the amount of funding required.
2.
We Assess Specialist Lenders
Our team reviews lenders that fund your type of construction project. We consider their current requirements and how they fit your proposed deal.
3.
Prepare the Application
We help organise the finance application and required project information. For residential construction, this may include your fixed-price contract and supporting build documents.
4.
Lender Decision and Construction Drawdowns
Once the facility is approved, funds are released according to the agreed drawdown process. As the project reaches the required construction milestones, further funds can become available for the next stage of work.
Commercial Construction and Development Funding
Development finance for projects of any scale, up to $1bn.
Tesoro Financial has experience arranging finance for commercial construction and large-scale residential developments. We arrange construction and development finance for eligible projects across metro and regional locations, with funding facilities of up to $1bn. Our accreditation includes high-quality lenders that specialise in construction finance and understand development transactions.
For larger development projects, lenders may assess the project's financial feasibility and require a certain level of presales before approving finance. Our team reviews the project's funding requirements and any applicable lending criteria before identifying suitable funding sources. If you are seeking the best construction loan lenders, we can discuss the proposed development before approaching suitable funding sources.
Why Work With Tesoro Financial on Your Construction Loan
Construction finance has been a specific part of our lending work for years. Our team works with high-quality lenders that specialise in construction funding, which allows us to assess funding sources that understand the type of project being presented. When working with an experienced construction loan specialist at Tesoro Financial, borrowers receive dedicated support for:
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Residential construction and major renovations
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Commercial and residential development projects
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Metro and regional construction funding
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Larger development facilities up to $1bn
As your construction finance broker, we manage communication with lenders throughout the application process. We help clarify requests from the lender and keep the application moving as the required information becomes available. If you are comparing construction finance brokers in Australia, our team can help you understand lender requirements and coordinate the finance application from initial assessment through to settlement.
Construction Finance Support Across Australia
If you are searching for a construction loan broker near me in Australia, Tesoro Financial can assess residential and development funding requirements from the early planning stage through to the loan application.
Tesoro Financial supports construction and development clients across Australia, with funding options for eligible metropolitan and regional projects. With finance experience dating back to 2015, our team helps clients explore construction finance solutions nationwide.
Plan Your Build With Our Calculators
Planning your construction budget? Use our Mortgage Repayment Calculator to estimate potential loan repayments or our Stamp Duty Calculator to estimate transfer costs if you are purchasing land for your build.
Construction Loan Broker in Australia
Development and construction funding for projects of all sizes, from residential builds to commercial developments up to $1bn.
Tesoro Financial has years of experience arranging finance for construction and development projects. We work with specialist construction lenders and can assess funding for residential or commercial projects in metro and regional areas, from individual builds to developments requiring facilities of up to $1bn.
Finance Solutions for Canberra
Every service, one trusted broker
Home Loans
Buying your first home, investing, or refinancing in Canberra all come with different lending rules. As a home loan broker in Canberra, we compare lenders, loan features, and eligibility requirements to identify options that suit your circumstances. We can help you assess home loans and understand how different lending options may affect your plans.
Commercial Loans
Growing a business or expanding a commercial property portfolio takes finance that matches how your business actually runs. As your commercial finance broker in Canberra, we structure lending around your cash flow. Our experts can also arrange commercial loans in Canberra for purchase, expansion and equipment needs.
Asset Finance
Vehicle and equipment purchases can place pressure on cash flow when finance terms do not suit your needs. Our asset finance service helps Canberra borrowers compare finance for vehicles and business equipment. If you need a car loan in Canberra, our brokers can compare vehicle finance options from suitable lenders.
Construction & Development Funding
Construction finance requirements can vary based on the project type, development costs and funding amount. We arrange residential and commercial construction finance for Canberra developments, with funding options available for projects of different sizes. Larger funding requirements remain subject to lender criteria and a full project assessment. Contact us today to secure your construction and development funding in Canberra.
Private Funding
Private funding may suit borrowers whose loan requirements fall outside a bank’s standard lending criteria. Tesoro Financial provides access to private investors and private mortgage funds for Canberra clients. Our private debt funding options in Canberra include 1st and 2nd mortgages from 5.95%, subject to current rates, lender terms, and assessment.
Business Cash Flow Lending
Eligible self-employed applicants and small businesses may be able to access same-day cash flow funding for short-term business needs. Our brokers assess your funding purpose and financial position before comparing suitable lenders. We can help you explore cash-flow loans for your business in Canberra, tailored to your circumstances.
Discuss Your Construction or Development Project Today
Whether you are planning an individual build or seeking finance for a major development, Tesoro can assess the project and identify suitable construction funding options. Our team has years of experience writing construction deals and access to high-quality lenders that specialise in construction finance. Talk to us about the project, its funding requirements and where you are in the planning process.
Construction and Development Funding FAQs
Instead of receiving the full loan amount upfront, funds are released in stages as your build reaches agreed milestones. You typically pay interest only on the portion that's been drawn, which keeps costs lower during the earlier stages of a project.
Many lenders require a fixed-price building contract for residential construction finance. It helps the lender assess the build cost and funding requirements, although documentation requirements vary between lenders and projects.
In many cases, yes. It depends on the lender and your circumstances, including whether you already own the land or are purchasing it as part of the same project. We can talk through what applies to you.
Construction loans commonly release funds at agreed stages such as the slab, frame, lock-up and completion stages. The lender may require invoices, inspections or other evidence before releasing a progress payment.
Yes. Significant renovations and extensions are common uses for construction finance, particularly where the scope of work goes well beyond cosmetic changes.
Residential construction loans are generally built around a single home or renovation. Development funding for larger projects involves more complex due diligence, larger ticket sizes, and often presale or feasibility requirements that a standard residential loan wouldn't need.
Yes. While we are based in Bondi Beach, we can arrange finance for eligible metro and regional projects across NSW and other locations, depending on the project and lender requirements.