Home loans in Wembley Downs
Construction Loans Wembley Downs
Construction finance for Wembley Downs builds, run by Your Mortgage Broker Wembley Downs, a mortgage broker comparing a panel of lenders across the City of Stirling: staged drawdowns, real timelines and every cost published before you sign a builder's contract.
Your Builder Wants a Progress Payment. Where Does It Come From?
A construction loan works nothing like a normal home loan: funds sit undrawn while your build progresses, the lender releases money stage by stage, and your repayments grow along with the house. With 72.5 per cent of local dwellings being separate houses, knockdowns and rebuilds are natural projects here, and this page shows the mechanics, costs and common failure points. For an update rather than a rebuild, our renovation finance page covers that path.
Construction Loans We Arrange
Each variant below is assessed differently by every lender, with its own deposit rules, documents and valuation quirks, so knowing which one you are running before approaching a lender saves weeks of backtracking:
Standard Construction Loans
Most lenders fund a standard construction loan in five or six stages against a fixed price contract, releasing money after each stage is inspected, so you pay interest on what has been drawn, not the full balance from day one.
House and Land Packages
House and land packages split into two contracts, one for the block and one for the build, which means two settlements, a deposit paid early, and a loan drawn progressively, so timing the land finance really matters from the beginning.
Knockdown Rebuild Finance
Knockdown rebuild projects combine demolition and construction in one loan for most lenders, though some want the demolition completed and the site clear before formal approval, so the sequence depends on which lender you choose, and we check that beforehand.
Vacant Land First
Buying a block first and building later lets you secure the land while you finalise plans, with a land loan that converts to construction finance once a builder is contracted, though the valuation at conversion can shift your borrowing capacity.
Owner Builder Routes
Owner builder construction attracts a narrow field, because most banks refuse to fund a self-managed build, and those that do want a licensed supervisor, a costed plan and a bigger deposit, so expectations need setting before plans are actually drawn.
Renovation With Approval
Major renovations needing council approval, like a second storey on one of the suburb's larger homes, can be funded as construction or through an equity loan, and the right structure depends on the contract value and the equity you hold.
The Drawdown Schedule Lenders Actually Use
No other page in this vertical publishes this part. Progress payments follow a schedule set in your contract and mirrored by the lender, and while every contract differs, the typical release pattern looks like this:
| Stage | What It Covers | Typical Release |
|---|---|---|
| Slab down | Site works, footings and the slab pour | 15% |
| Frame | Wall and roof frame erected and inspected | 20% |
| Lock-up | External walls, roof, windows and external doors | 25% |
| Fit-out | Joinery, internal fit-out, plumbing and electrical rough-in | 25% |
| Completion | Finishing trades, final clean and handover | 15% |
Interest on Drawn Funds
During construction most lenders charge interest only on the money actually released, so if the loan is approved at six figures but the slab stage alone has been paid, your monthly commitment reflects the drawn balance, not the approved limit.
Progress Valuations Explained
Each drawdown request typically needs an invoice from your builder plus either a valuation or a signed inspection report confirming the stage is complete, and lenders process the payment within a few business days once that paperwork clears their system.
Interest Only While Building
Nearly all construction loans run interest only until completion, then convert to principal and interest at a rate confirmed near the end of the build, which protects your cash flow while rent might be coming out of the same account.
What You Really Pay While the Build Runs
Approval is only half the story, because between signing and handover you pay interest on drawn funds, possibly rent as well, and absorb every variation the contract allows, so work through these four costs:
Carrying Two Commitments
Renters building while renting face two sets of payments, and in Wembley Downs the median rent of $470 a week plus interest on drawn funds needs a budget that survives the full build, because holding money running out stalls projects.
The Contingency Buffer
A contingency of roughly five to ten per cent of the contract price is standard, held in your savings not borrowed, because variations, soil surprises and inclusions creep on most builds and the loan will not stretch to cover them.
Extended Build Costs
Delays cost money: fixed price contracts can carry time-based escalation clauses beyond a nominated completion date, insurance premiums keep running, and every month of rent is a month your deposit is not reducing debt, so build the timeline very generously.
The Full Repayment Picture
Across a typical twelve month build you pay the land costs upfront, then staged interest that grows with each drawdown, then full repayments from completion, and modelling that whole sequence with your actual figures before signing beats discovering it mid-build.
How it works
Our Construction Loans Process
A construction application moves through more stages than a standard purchase, so here is the sequence with honest durations, gathered from how long each step genuinely takes:
- 1
Strategy and Pre-Approval
Expect the first strategy call and document gathering to take one to two weeks, covering your contract, deposit evidence and income documents, after which we can seek conditional approval from lenders, so you can sign a builder contract with confidence.
- 2
Lodgement and Assessment
Lodgement to formal approval typically runs two to three weeks once the builder contract and fixed price documents are attached, because construction files get assessed against the contract value, the completed valuation and your serviceability all at the same time.
- 3
Drawdowns as You Build
Drawdowns begin after settlement of the land or the first stage, with each request lodged as the builder reaches a stage, an invoice and inspection supplied, and funds released within three to five business days of the lender accepting it.
- 4
Completion and Conversion
At practical completion a final inspection confirms the build matches the contract, the last drawdown is then paid, and the loan converts to a principal and interest home loan, with the journey taking ten to fourteen months end to end.
- 5
Staying Across Every Stage
Throughout the build we track each drawdown against the schedule, chase valuations when stages complete close together, and flag anything that threatens timing, so you are dealing with one person who knows your file rather than a lender's general queue.
Where Construction Loans Fall Over
Plenty of the suburb's 315 dwelling approvals over five years proceeded smoothly, yet the same handful of failures accounts for most stalled construction files, and each one is checkable before you commit a dollar:
Fixed Price Variations
Fixed price contracts are rarely fixed to the end, because provisional sums for earthworks, timber and fittings get trued up, and a variation signed mid-build without checking finance first can leave the shortfall on a credit card at card rates.
Valuation Falls Short
If the valuation comes in below the contract price, the lender funds to the valuation, not the contract, and the gap becomes your problem on settlement day, which is why we test contract price against comparable sales before you commit.
Builder Off Panel
Lenders each maintain a list of approved builders with insurance and registration, and if your builder is not on it, either the lender declines or the builder gets accredited, so check before signing rather than after the deposit is paid.
Build Outlasts Term
Construction approvals carry an expiry, commonly twelve months, and a build that slips past it needs an extension, reassessment of your circumstances and sometimes a rate change, so a timeline agreed with your builder matters as much as the price.
Why Choose Your Mortgage Broker Wembley Downs
A new broking business cannot lean on reviews or longevity it has not earned, so these are the four things we can prove, each verifiable before you hand over a single document:
A Named Accountable Broker
Every file is handled by Your Mortgage Broker Wembley Downs, a credit representative whose number 370592 and Australian Credit Licence 389328 appear in the footer, and the same broker always structures your construction loan from the first conversation through to settlement.
Panel Lending, Not One Bank
Lending policy varies enormously between lenders, from how they treat owner builders to which stages they will fund, and comparing a panel of lenders means matching your build, your builder and your contract with the credit policy that fits it.
No Cost to Most Borrowers
For most construction borrowers our service costs nothing, because the settling lender pays a commission, and where any fee would apply to your situation it appears in the credit guide before you sign anything, not hidden in the loan afterwards.
Process Before Product
We publish our process, our timelines and our fee and commission structure on this site, because a new business has no reviews to hide behind, and a borrower committing twelve months to a build deserves the full mechanics in writing.
Areas We Service
Your Mortgage Broker Wembley Downs serves clients building across Perth's western suburbs, including Doubleview, Woodlands, Churchlands, Floreat and City Beach, plus the wider City of Stirling, and the same drawdown mechanics and lender policies apply wherever your block sits.
Questions answered
Frequently Asked Questions
How much deposit do I need for a construction loan in Wembley Downs?
Most lenders want five to ten per cent of the combined land and construction cost, and if you already own your Wembley Downs block outright, its value often covers the deposit entirely.
How do progress payments actually work?
Your builder invoices at each completed stage, an inspection confirms the work, and the lender releases that stage's percentage directly to the builder, so you never receive or carry the money personally.
What does a construction loan cost me?
You pay government charges on the land, lender application and valuation fees, and interest only on funds drawn so far, while our service costs nothing for most borrowers because the settling lender pays a commission.
Can I pay interest only during the build?
Yes, most construction loans run interest only on the drawn balance until completion, then convert to principal and interest repayments on the full amount, which is why conversion terms matter when you compare lenders.
Will any lender accept my builder?
No, every lender keeps its own list of approved builders with current insurance and licence checks, so confirm your builder is accepted by your shortlisted lenders before signing any contract or paying a deposit.
How long does construction loan approval take?
Conditional approval often takes one to two weeks once documents are complete, and formal approval two to three weeks after the builder contract and valuation are lodged, with extensions available if your build needs longer.
Mortgage broker for Wembley Downs and the suburbs around it
Talk to Your Mortgage Broker Wembley Downs Before Your Builder Asks for the First Progress Payment
Call Your Mortgage Broker Wembley Downs on (08) 6311 4000 for a free strategy call covering your contract, deposit and drawdown schedule, with a reply inside one business day. First build instead? See our first home buyer page and the WA First Home Owner Grant.