Guide to Land & Construction Loans
From choosing land → valuation → progress payments → handover
If you’re exploring real estate, or comparing land for sale on Realestate.com.au and Domain RealEstate, then understanding how a construction loan works is essential.
Building your home is exciting—but the process and financing can feel overwhelming. This guide will simplify construction financing, explain valuations, progress payments, and how lenders use CoreLogic, RP Core Logic, and CoreLogic RP Data to determine property value.
A land loan helps you purchase vacant land — whether you plan to build immediately or later. It’s ideal for future homeowners, investors, or anyone wanting to secure land in a high-growth area.
🏞️ Suitable for vacant land purchases
🏘️ Perfect for house & land packages
📈 Ideal for long-term investment strategies
🏦 Higher deposit requirements compared to standard home loans
📍 Strong focus on location, zoning & access to utilities
If you’re comparing land loan lenders, Credific Finance helps you choose the most suitable option for your goals.
🔗 Learn more: Credific Finance Land Loan
A construction loan funds the building of your home in stages. Instead of receiving the entire loan upfront, money is released through progress payments, helping you stay in control financially.
🔄 Released in five to six stages, aligned with your build
💸 You only pay interest on the amount drawn, not the full loan
🏡 Converts to a normal home loan once construction is completed
🛠️ Suitable for new builds or major renovations
🔗 More info: Credific Finance Construction Loan
Once you find the perfect block:
Learn more: Credific Finance Land Loan Guide
To apply for a construction loan, lenders require:
These documents help determine the property valuation once completed.
The lender orders a valuation based on the future completed home.
This determines how much the bank will lend.
Once valuation & documentation are complete, the lender issues:
Construction loans are released in progress stages, not all at once.
🚜 Slab / Base Stage – The concrete slab is poured.
💰 Around 15–20% of the build cost.
🧱 Frame Stage – Framework and roof structure completed.
💰 15–20%.
🪟 Lock-Up Stage – External walls, windows, and doors installed.
💰 30–35%.
🎨 Fixing Stage – Internal fittings: plaster, cabinetry, plumbing, electrics.
💰 20–25%.
🏁 Practical Completion – Final touches, site clean-up, and handover.
💰 5–10%.
You pay interest only on the amount drawn, not the full loan.
This is when the construction is almost complete.
Congratulations — your new home is complete! 🎉
🔗 Learn more: Credific Finance – Construction Loan Process
🏞️ Buy Land → 📄 Provide Construction Docs → 📊 Valuation → 🏦 Loan Approval → 🏗️ Progress Payments → 🏁 Practical Completion → 🏡 Handover
📍 For land-only purchases
🗺️ Based heavily on land valuation & zoning
💰 Often requires larger deposits
🧱 Suitable if you’re planning to build later
🛠️ Funds the build in progressive stages
💸 Lower repayments during construction (interest-only)
🧾 Requires builder contracts & approved plans
🏡 Build your dream home your way
💸 Interest-only payments during construction
🎯 Flexible planning — buy now, build later
🚀 Great for first-home buyers, especially using grants
🧱 Perfect for house & land packages
🔒 Builder monitored through progress stages — added security
Credific Finance makes the process simple, transparent, and tailored to your situation.
🔍 Comparing 40+ lenders for the best deal
📊 Structuring land + construction loans smoothly
🏡 Accessing First Home Owner Grants & schemes
🧭 Guiding you through approvals, documents & progress stages
📅 Managing everything from land purchase to final settlement
👉 Speak with a specialist here: Credific Finance
❓ Can I buy land now and build later?
✔️ Yes — Many lenders allow this, depending on the land type and timeframe.
❓ Do I pay full interest during the build?
✔️ No — Interest is only charged on the funds drawn (progress payments).
❓ Can construction loans be refinanced?
✔️ Yes — Once the home is complete, you can refinance for better rates.
Most home builders start by researching:
🏘️ Property for sale, 🌱 Land for sale, 🏠 Homes, 🏡 Properties, 🔎 “Realty near me”, 📊 Market trends from Core Logic Company, 📈 Local values with CoreLogic RP Data
Whether you’re purchasing vacant land or ready to build your dream home, land and construction loans offer flexibility, control, and affordability. With Credific Finance by your side, you’ll enjoy expert guidance every step of the way.
✨ Ready to start your journey?
👉 Contact Credific Finance today and let’s build your future together!
