Construction Home Loans Perth.

Are you looking to build a new home?
Mike Mackenzie inspecting some home construction options

Great Finance Deals For Your New Build or Renovation.

Looking to build your dream home? Maybe you are renovating an old fixer-upper to give it a new lease on life. Whatever your goal, a construction home loan could be what you need. I can help you find the right loan with the right lender to help you turn your dream into reality.

I have partnered with some of the biggest builders and developers in Western Australia to bring you great deals on house and land packages. Get in touch with me to find out more and start your journey to your new home.

Construction Loans For New Builds and Major Renovations.

You’re building a new home, so you need a mortgage, right? But not all mortgages are the same. Most lenders offer a construction home loan if you are building or renovating a home. This is a special type of loan where you “drawdown” from the loan at various stages of construction. You can save money because you only pay interest on the amount drawn until construction is complete. At the end of construction, you begin paying interest on the full loan amount. 

A quality home recently constructed after a loan approval with the help of Mike Mackenzie

What Drives Mike Mackenzie?

Solutions that work.

Long-term outcomes to reduce your financial stress.

Family-first approach.

Easing the financial burden for you and your family.

Knowledge to empower.

Educating you to make informed financial decisions.

Giving your time back.

Saving you valuable time negotiating with lenders.

Invested in your success.

Simplifying your finances to help you get ahead.

Financing your future.

Tailored finance for today and tomorrow.

Building a New Home?
Get in Touch Today For Your Loan Needs!

Young couple happy after recieving a keystart loan for their home construction

What is a Keystart Construction Loan?

With a construction home loan, you repay the loan progressively during the various stages of construction until building is complete. Your monthly repayments vary based on the value of the loan and the amount of your progress payments. However, you usually pay less during construction to make it easier to pay rent while you build your dream home.  

With a Keystart Construction Loan, you pay a minimum $200 per month during the construction period. When construction is finished, you begin full monthly repayments, with any interest charges from the construction period added to the loan amount. As your repayments will vary based on a number of factors, it’s best to get in touch with me to discuss your situation. 

Construction Loan Interest Rates.

While your home is in the process of construction or renovation, most lenders would not consider it a tangible asset to secure your loan. For this reason, construction loan interest rates are usually higher than those for a typical mortgage.

It’s not all bad news, though. During construction, you only pay interest on the amount drawn. So, while the interest rate is higher, your repayments will most likely be less than a normal home loan.

A worker in a construction site diligently working while his commercial loan gets approved with the help of Mike Mackenzie

Construction Home Loan Repayment Calculators.

How Can I Help You Today?

A first home buyer in Perth looking for finance and loan options online

Buying your first home?

I can help get you out of the rent trap and into your first home.
Mike Mackenzie explaining his client on how to get a construction home loan in Perth

Are you looking for a new home?

I can help with your new home purchase or mortgage refinance.
A blue Subaru WRX bought with a car loan, parked in a Perth carpark

Financing a vehicle?

I can help with finance to get you into the car of your dreams.
A close up of Mike Mackenzie working hard at his desk to reduce loan repayments

Need a personal loan?

I can help you achieve your goals with the finance you need.
A professional woman looking online for a commercial loan for her business

Need finance for your business?

I can help with commercial finance for your business.

Building a New Home?
Get in Touch Today For Your Loan Needs!


Why would I choose a construction loan?

With a normal home loan, you repay the full amount (principle) of the loan including interest from the very beginning. With a construction loan, you pay interest only on the build during construction and principle and interest on the land. 


It can take up to 12 months, on average, before you begin making a full repayment on your home loan. This can save you a lot of money while you are constructing your new home. Once the build is complete, you revert to a normal home loan. 

How can I get a construction loan?

Applying for a construction loan differs somewhat from the process for a normal home loan. Like most home loan applications, you will need a deposit and proof of income and expenses. This enables the lender to assess your ability to repay the loan. 


In additional to a regular home loan, however, you will most likely be required to submit your building contract, house plans, and council permits. You may also need to include evidence of applicable insurance i.e. public liability and/or builder’s insurance. 


Your lender could also require confirmation of the work having been completed at each stage of construction. This is usually an invoice from the builder requesting payment. You will most likely need to complete a Drawdown Request at each stage of construction, which tells the bank it’s time to drawdown funds from the loan to pay your builder. 

What do I need for a construction loan?

1. Proof of your income

Lenders need to know you can service a loan and will require evidence of your income. Two or three recent payslips will satisfy most lenders of your income and your ability to make repayments. 


2. Proof of your finances

Lenders need to know about your financial situation before they consider you for a loan. They will require bank statements, superannuation statements, and any other information that provides evidence of your expenses, assets, and liabilities. 

3. Proof of your construction

Lenders need to know they are giving you a loan for the right reasons. They usually require evidence of your building plans, construction timelines, and council approvals. They may also request proof of your builder’s qualifications and their licensing details. 


4. Your deposit

Most lenders require a deposit of around 5% of the projected value of your property on completion. However, when construction is complete, you will most likely revert to a typical mortgage. This could mean you need a deposit of 20% or more to avoid additional costs for Lenders Mortgage Insurance (LMI). 


5. A good credit rating

Your credit history can have a significant impact on your suitability to obtain any type of finance. A history of borrowing and repaying money responsibly can help boost your credit rating, making you a more attractive proposition to lenders. 

What is the structure of paying off a construction loan?

A construction loan gives you access to money progressively as you complete the various stages of your build. The beauty of this type of loan is that you only pay interest on the funds drawn during each stage of construction. For example: 


  • When your land settles, you only pay interest on the cost of the land 
  • Once the slab goes down, you might pay a further 20% of the total mortgage cost 
  • Once the bricks go up, you could pay another 20% of the total mortgage cost 
  • And so on until construction is complete. 


My Lending Partners.

I have partnered with multiple lenders, which gives me access to a wider selection of loan options and more competitive rates for you.

Contact Mike Mackenzie!

Please fill out the contact form and I will get back to you to discuss how the right finance can help you achieve your goals.

Reach for a risk-free consultation today!