Finance FAQs

Frequently asked questions


What is construction finance?

Unlike traditional home loans, Construction Finance allows you to lend in stages rather than in one single (expensive) lump. It means you pay the smallest amount possible while your new home is being built.

With construction loans, as your new home progresses, so do your payments. They’re called ‘progress payments’ (funny that) and they’re charged as key construction milestones are reached. Like:

  • When the slab goes down
  • When the frame goes up
  • When the walls, windows and doors are in place
  • When the internal and external fittings (i.e., cupboards and appliances) are in
  • When the keys are ready for handover

Then, only when your home is officially move-in ready (yay!), your loan will start to work like any other home loan. Thank you, Construction Finance.

A little word of warning: Construction Loans are very different from regular home loans, both in terms of how they are set up and their application, and only account for 8% of the total loans in Australia.

So, unless you’re aware of all the differences and confident in their application, we suggest getting some advice from a specialised mortgage broker, like those at Oui Finance, who are experts in this space. In fact, even if you do consider yourself something of a lending legend… just go ahead and get the advice anyway.

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