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Building your dream home?


Talk to your local Adelaide Hills construction home loan experts to get a better deal.

Building a brand-new home, or making major renovations on an existing home are exciting projects to undertake as homeowners. If you’re planning to build or give your existing property a major face lift, it may be worth considering a construction loan.

Before you start building your home, your local Adelaide Hills Mortgage Choice broker can help you with expert advice throughout the whole process.

Building your own home is both exciting and a little overwhelming. But the rewards are outstanding. At Mortgage Choice in the Adelaide Hills, we pride ourselves on being your local construction home loan experts. We get to know your personal situation and then we work with over 20 lenders, including the big four banks, to find the loan for you. We’ll manage your home loan from application to post-settlement, all at no cost to you.

As your local Adelaide Hills home loan expert, you can depend on us to work hard to find you the best deal. We've helped hundreds of local Adelaide Hills residents get into their dream homes. Our friendly team to help make your dreams come true.


Matt and Julie were both really helpful right from the start, and easy to deal with. We were first home buyers, and they made the process so much easier than I thought it was going to be. We've just moved in now, and I would certainly recommend them if you're looking to buy a new home.

Georga and Gavin, Adelaide Hills, SA

What are construction loans?

Construction loans, also known as owner builder loans, are different from regular home loans, due to building works requiring ongoing payments as the construction progresses. In the case of a traditional home loan, the totality of funds will be made available in a single lump sum, while a construction loan lets borrowers draw on the loan balance when payments need to be made to the builder. These payments are made at key stages of the building process, and are known as progress payments.

While work is still in progress, you will only be asked to make interest repayments on money that has been drawn down. This means you will only be paying interest on money that has been used. Therefore, repayments will be smaller at the start of your loan, and will increase gradually as your construction project approaches completion.

In general, construction home loans have a variable rate, with a maximum Loan to Value Ratio (LVR) of 95%. This varies depending on lenders, therefore it is something worth speaking to your mortgage broker about. Lenders also often set a maximum timeframe for the complete draw down of your loan, usually around 6 months. If you are not planning to start building right away, you may need to purchase the land on a separate land loan.

The construction home loan process

  • Application Boost your chances of approval by knowing what’s required. Much like a traditional home loans, your lender will have a look at your income and savings, to judge your capacity of repayment. However, additional documents will be needed for a construction loan, such as a fixed price building contract, building plans approved by Council, a copy of your builders licence, etc.

  • Making progress payments Once your loan is approved, funds will be provided in a series of payments. These will be made at various milestones of the building process, outlined in your building contract. The six stages of construction are typically the preparation, followed by the slab (or base floor), frame, lock up, fit out and finally, completion.

  • Home is complete Before making the last progress payment to your builder, your lender will inspect the property and need a few last documents for a final valuation. Once the final payment is made, your loan will switch to the standard home loan or loan package that you have agreed upon.

  • You are now free to move in! Celebrate with friends and family, and make a fresh start in your brand-new home!

Building your home guide 

Building a brand new home or completing major renovations on an existing property are some of the most exciting projects we can undertake as homeowners. We’ve put together a guide to help you through your finance options. Download the guide here.

We're here to help

So whether you're building your first home or upgrading the family home, the team of local Adelaide Hills construction home loan experts can try and help find you the best deal. We'll be here for you at every stage of the process.

Contact us on 8398 2955 or visit us at our office at 214 Mt Barker Road, Aldgate

Contact us today.

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