If you’re a small property builder or investor, cash flow and timing can make or break your project. Whether you’re building a duplex, subdividing a block, or managing a boutique development, traditional finance often fails to keep pace with the speed and flexibility you need. This is where Building Loans come in.
What are Building Loans?
Building Loans, sometimes called construction loans, are short- to medium-term loans designed to fund residential or commercial construction projects. Unlike a standard mortgage, which pays out a lump sum, a building loan releases funds progressively as the construction reaches predefined stages. This staged approach aligns funding with your project timeline, helping you manage costs and stay on track.
At Funding, our Building Loans are tailored for small-scale builders and developers who need a flexible, fast, and practical solution to finance construction from start to finish.
Key features of Funding’s Building Loans
- Progressive drawdowns: Receive funds as each stage of construction is completed (slab, frame, lock-up, fit-out, completion).
- Interest-only repayments: Pay interest only on the amount drawn down, not the full loan amount.
- Fast approvals: Our streamlined process gets your loan approved quickly so you can get on with your build.
- Flexible terms: We work with you to structure a loan that fits your project timeline and exit strategy.
- Funding up to 70% LVR: Unlock more capital to complete your project with less upfront equity.
Common challenges building loans solve
Building Loans aren’t just about financing construction. They solve key problems that often hold back small builders and investors:
- Cash flow gaps: Managing contractor payments, materials, and unforeseen costs without tying up your working capital.
- Bank inflexibility: Traditional lenders often have rigid criteria and slow turnaround times that delay project milestones.
- Staged payments: Aligning funds with your build schedule means you’re not paying interest on unused capital.
- Funding shortfalls: If your project costs more than expected or valuations come in low, we can work with you to bridge the gap.
- Exit strategy alignment: Whether you’re selling on completion or refinancing, we build your loan around your project lifecycle.
Who are Building Loans best suited for?
Our Building Loans are ideal for:
- First-time developers looking to fund their first small-scale build.
- Investors subdividing land or adding secondary dwellings.
- Experienced builders managing multiple concurrent builds.
- Homeowners undertaking a major knockdown-rebuild or dual occupancy project.
If your project is under $10M and you’re looking for a finance partner who understands the pace and complexity of construction, we can help.
Why choose Funding?
We understand that time is money. Our team specialises in property-backed finance with:
- Deep expertise in construction funding.
- A personalised approach for every borrower.
- Transparent communication and fast decision-making.
- A track record of supporting small and mid-sized property projects across Australia.
Get started
Ready to accelerate your project with a tailored Building Loan? Speak to the team at Funding to explore your options and get a solution that works for your timeline, budget, and goals.
Let us help you build faster, smarter, and with less stress.
