Construction Loans

At M Finance, we know building your dream home is a thrilling journey, and we’re here to make the financing as smooth as possible.

Whether you’re buying land to build on later or going with a house and land package, we’ll guide you through each step of the construction loan process.

To get started straight away connect with the M Finance team, otherwise read on to learn more.

 

Option 1: Buying Land First, Then Building

If you’re buying your block of land first, we’ll help you secure a land loan, typically covering up to 80% of the land cost (90 to 95% with lenders mortgage insurance).

Once you’re ready to start building, your builder will provide a fixed-price building contract with detailed plans and costs. That can be next month or years away. We then apply for an additional loan to build. The loan will then move into a progress payment structure, where funds are released at key construction stages — such as laying the slab, building the walls, and completing the roof. During this time, your repayments are usually interest-only, and the loan balance owing increases gradually as each stage is completed.

 

Option 2: House and Land Package

A house and land package combines the land and home purchase in one streamlined process as you only go through one loan application, giving you a clear view of the total cost upfront. Your loan will cover the land portion first, then follow the progress payment structure as the home is built as you proceeding with both together. This gives you confidence in both the timeline and costs involved.

 

Why Work with M Finance?

Construction loans can be complex, with various stages and loan increases along the way. We’ll help you understand each part of the process, including getting pre-approval so you know exactly what you can borrow, and which loan structure fits your plans. Let us handle the loan details so you can focus on bringing your new home to life!