Frequently Asked Questions

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.

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.

 

 

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.

Yes, however interest repayments will only be required on the amount of the loan that has been drawn down and paid to the builder.

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.

We require an independent licensed builder to manage the project to ensure quality, compliance, and financial security throughout the build.

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.