Construction Loans in Perth

Building your dream home from the ground up is an exciting journey, but financing a construction project works differently from a standard home loan. Kowloon Investment Group specialises in construction loans for Perth homeowners and investors, guiding you through the unique lending process from land purchase through to completion.

How Construction Loans Work

Unlike a standard home loan where you receive the full amount at settlement, a construction loan is drawn down in stages as building progresses. These stages, known as progress payments, typically include:

1. Deposit — Paid to the builder when the contract is signed (usually 5%)
2. Base or slab stage — When the concrete slab or base is laid (typically 10-15%)
3. Frame stage — When the structural frame is erected (typically 15-20%)
4. Lock-up stage — When external walls, windows, doors, and roofing are complete (typically 20%)
5. Fit-out or fixing stage — When internal fittings like plumbing, electrical, and cabinetry are installed (typically 20%)
6. Completion stage — When the build is fully complete and ready for handover (final payment)

During construction, you typically only pay interest on the amount drawn down so far, which keeps your repayments lower while building is underway.

Types of Construction We Finance

• House and land packages — Purchase land and build with a single or split loan
• Custom builds — Work with your own builder and architect for a bespoke home
• Knock down and rebuild — Demolish an existing property and build new
• Major renovations — Extensive renovations that require staged funding
• Owner-builder projects — Finance available for licensed owner-builders (select lenders)
• Investment construction — Build investment properties including duplexes and units

What You Need to Apply

In addition to standard loan documentation, construction loan applications typically require:

• Fixed price building contract from a licensed builder
• Council-approved plans and specifications
• Builder’s insurance details (Home Indemnity Insurance in WA)
• Evidence of land ownership or a land purchase contract
• A quantity surveyor report (for some lenders)

Why Use Kowloon for Construction Finance?

Construction lending is more complex than standard home loans, with different lenders offering vastly different terms, progress payment structures, and interest rate options. With access to over 40 lenders, we find the construction loan that best matches your build timeline, budget, and financial situation. We also liaise with your builder to ensure progress claims are processed smoothly.

Planning to build in Perth? Contact Kowloon Investment Group today for expert construction loan advice.

Perth Suburbs We Service

Kowloon Investment Group helps home buyers and investors across Perth’s metropolitan area:

• Perth CBD | Northbridge | East Perth
• South Perth | Victoria Park | Burswood
• Subiaco | Claremont | Fremantle
• Scarborough | Joondalup | Morley
• Mount Lawley | Midland | Belmont
• Rivervale | Canning Vale | Armadale
• Rockingham | Mandurah | Baldivis
• Cannington