Residential Construction Loans
Building made simple. For borrowers without traditional proof of income, our construction loans make financing new builds or major renovations easy from start to finish.
Loan approved
$500,000
Discover our flexible approach
Flexible income
Build your vision
Simple
Value-packed
Get to know our construction loans
- Finance a single dwelling, duplex or structural renovations or extensions.
- Build your dream home or add to your investment portfolio.
- Up to 5 years interest-only, including after you move in.
- Flexible options for income verification, including for self-employed borrowers.
The low-down on our loans
Ideal for self-employed clients or those with non-traditional income. We accept alternative documents for income verification like:
- Accountant’s letter
- 6 months business activity statements (BAS)
- 6 months business bank statements
- Tax returns
$3 million
80%
2 to 5 years
30 years
$3 million
80%
2 to 5 years
30 years
To be eligible for a Bluestone Residential Construction Loan, you’ll need to be an Australian resident over the age of 18, and meet other eligibility and approval criteria.
Ready to crunch the numbers?
Understanding the financial impact of your potential new loan will help plan your budget, alongside your expenses.
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Our curated selection of the latest market insights, guides and tactics to help achieve your property ambitions.
Have Questions?
We’re always here to help! Check out our full list of FAQs or get in touch with our team.
How do construction loans work?
How do construction loans work?
A construction loan finances the build of a new home or major renovation.
Instead of receiving all the funds upfront, the loan is drawn down in stages (often called progress payments) as the build moves through key milestones – like slab down, frames up and lock up.
Interest is only paid on the amount that’s been drawn down, and not the full approved loan amount. Once construction is complete, the loan transitions into a standard home loan.
How do progress payments work during construction?
How do progress payments work during construction?
The payments are made directly to the builder at various milestones during construction.
After each stage is completed and invoiced, we may confirm the work with a valuation report and then release funds from the loan directly to the builder, ensuring payments match completed work and the build stays on track.
Just email a copy of the receipt along with the Progress Payment Request Form to our specialist team and we’ll organise to release the appropriate amount of funds directly to the builder.
What types of properties can be financed with a construction loan?
What types of properties can be financed with a construction loan?
Bluestone’s Residential Construction Loans can be used to finance major renovations (like adding an extension or a complete rebuild) along with building new single or dual occupancy dwellings.
That means if you’re planning to build a standalone home or duplex, you’re good to go. Larger developments or multi-unit projects are not accepted.
Do repayments need to be made during the construction period?
Do repayments need to be made during the construction period?
Yes, however interest repayments will only be required on the amount of the loan that has been drawn down and paid to the builder.
What happens once construction is complete?
What happens once construction is complete?
Once construction is complete, the loan automatically switches to a regular home loan. Payments will remain interest only (for the remainder of the elected interest-only period) or until the borrower elects to switch to principal and interest.
We will confirm the new repayment schedule and terms as the loan transitions into a standard home loan.
Do you allow owner-builder construction?
Do you allow owner-builder construction?
We require an independent licensed builder to manage the project to ensure quality, compliance, and financial security throughout the build.
Do you offer loans for self-employed borrowers?
Do you offer loans for self-employed borrowers?
Yes, we offer the same flexible income verification and alt doc loans as our home loans.
We offer a few different ways for self-employed borrowers to prove their income, including tax returns, business activity statements, or business bank statements.
The Legal Bits
To be eligible for a Bluestone Residential Construction Loan, you’ll need to be an Australian resident over the age of 18 with a credit profile, and meet other eligibility and approval criteria. The amount that will lend is determined based on the applicant’s creditworthiness and other lending criteria. Maximum construction period of 2 years. Fixed price building contract required. See our Target Market Determination for further details.
* Principal and interest rate displayed as an example, based on a Full Doc Residential Construction Loan. Different rates may apply for interest only repayments. Rates offered will vary depending on a number of factors including individual credit risk, stability of income, LVR, the length of the term of a loan, the amount borrowed, the purpose of the loan and prevailing market conditions. All interest rates quoted are for new business only, are expressed as a nominal annual percentage rate and are subject to change. During an interest only period, your interest only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.
** Comparison rates displayed are calculated on secured loan of $150,000 over a term of 25 years. WARNING: These comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.