General information only. Finance is subject to lender criteria, assessment, terms and approval.
Purpose-ledStart with the transaction
TransparentConsider cost and conditions
Case by caseNo blanket promises
At a glance
Where Residential Construction Loans may fit
Residential construction finance can fund eligible building projects progressively, usually through drawdowns aligned with verified stages of work.
The suitable structure depends on the purpose, requested amount and term, borrower profile, supporting documents, security and a credible repayment or exit strategy.
Common scenarios
Acquisition and project costs
Construction or staged delivery
Refinance, completion or sales-based exit
Assessment
What lenders typically review
Requirements vary, but a well-prepared request usually addresses these fundamentals.
Purpose & timing
What the funds are for, how much is needed and when the transaction needs to complete.
Financial position
Income, trading history, existing commitments, credit profile and capacity to meet the proposed terms.
Security & exit
Available security, current value and debt, plus a realistic repayment, refinance or sale strategy.
Our process
From initial conversation to an informed decision
1
Outline the request
Share the purpose, timing, amount and the background to the scenario.
2
Prepare the information
Confirm the documents and evidence a prospective lender is likely to need.
3
Review indicative terms
Consider the total cost, conditions, risks and exit strategy before proceeding.
Next step
See whether this option may suit your scenario
A short conversation can clarify the information required and the practical pathways worth exploring.
Eligibility depends on the lender, purpose, amount, term, supporting documents, financial position and any proposed security. An enquiry is not an approval.
What will the finance cost?
Rates, fees and other costs vary by lender and risk. Review the complete indicative and final terms, not just the headline rate.
How long does assessment take?
Timing depends on the complexity of the transaction, the lender and whether complete information is available. Approval and settlement timeframes are not guaranteed.
Will alternative documentation be considered?
Some lenders consider alternative evidence for selected scenarios. Requirements still apply, and the lender must be satisfied with the request and repayment pathway.
Indicative product matrix
Residential Construction Loans — lending parameters at a glance
A practical starting point for discussing your scenario. These are indicative market parameters, not an offer or approval.
Why Zip Funding is different
We are not a bank. We assess the deal, not just the scorecard.
Private lending for business and property transactions that need judgment, flexibility and a bespoke structure.
Zip Funding works exclusively in the private lending space. We are people in business helping people in business and property, and we take time to understand the complete story behind every proposal.
Credit issues, tax debt, limited or unavailable financial statements, unusual security and urgent timeframes can still be considered. We assess the security, purpose, current circumstances, repayment capacity and credible exit strategy, then present the transaction to suitable private investors and non-bank lenders.
Our position is clear.A proposal should be judged on its individual merits — not rejected simply because it falls outside standard bank policy.
Individual assessmentEach transaction is considered on its complete merits, not automatically declined by a standard scorecard.Credit issues consideredDefaults, arrears, tax debt and previous bankruptcy can be explained and assessed in context.Alternative evidenceBank statements, BAS, leases, contracts, valuations and asset position may support the application.Bespoke funding structureWe shape the proposed term, security and repayment pathway around the actual transaction.200+ funding relationshipsAccess to private investors and non-bank lenders with different mandates and risk appetites.Competitive private termsWe seek suitable pricing and conditions for the circumstances, security and required timeframe.Clear before proceedingProposed rates, fees, conditions and required information are explained before commitment.Practical communicationClear updates, realistic expectations and urgent scenarios prioritised where possible.
Tell us the complete story.We will identify the information required and discuss which private funding pathways may fit.
Approval, pricing, LVR, fees, conditions and timing remain subject to the selected lender, valuation, documentation and funds availability.
Indicative leverage / LVR
Up to 80% of acceptable property value in selected cases, with separate limits commonly applied to total construction cost.
Indicative loan amount
$300,000 to $100 million+ depending on residential or commercial project scope.
Typical term
Typically 6 to 36 months, including practical completion and sale/refinance time.
Security
Land, partially completed works, approvals, building contract and other project security.
Bad credit or adverse history
Credit issues do not automatically rule out a proposal. Defaults, arrears, tax debt, discharged bankruptcy and other credit events are assessed in context and on their individual merits.
Limited or no financial statements
A lack of full financial statements does not automatically rule out a proposal. Selected lenders may consider bank statements, BAS, leases, contracts, valuations, accountant information, asset position and a credible exit strategy.
Repayment or exit
Sale, refinance on completion or longer-term investment debt.
Assessment focus
The lender reviews cost-to-complete, valuation, builder capability, approvals, contingency and the proposed exit.
Timing
Indicative approval timing depends on valuation, documents, lender capacity and transaction complexity. Urgent scenarios can be prioritised.
Flexible assessment when the application is not bank-standard
For Residential Construction Loans, the most useful information is often project-specific: the valuation, fixed-price or detailed building contract, approvals, quantity-surveyor information, cost-to-complete and exit. Limited business financials or prior credit events do not automatically prevent consideration when the project and security position are supportable.
Credit events are explained in context, including what happened and what has changed.
Alternative evidence can be used where full financial statements or tax returns are unavailable.
Higher-LVR requests need stronger security, a credible exit and a lender whose policy fits the transaction.
Rates, fees, valuation requirements and conditions are confirmed before proceeding.
Important: LVR means the loan amount as a percentage of the lender-accepted value of the security. All figures are indicative only. Eligibility, maximum LVR, loan amount, security, valuation, documents, credit checks, rates, fees, terms, timeframes and approval vary by lender and applicant circumstances. Independent legal, tax and financial advice may be appropriate.
Residential Construction Loans Built Around Your Project
Finance new homes, townhouses, duplexes, major renovations, project completion and eligible owner-builder construction.
The facility is structured around land value, building costs, project capability, available equity, cost-to-complete and a credible completion and repayment strategy.
The draw schedule must keep the build funded—not just start it.
Construction finance is advanced progressively as approved stages are completed and verified. Each draw needs to remain aligned with work completed, remaining budget, contingency and the full realistic cost to reach practical completion.
A project can sit below 80% LVR and still be unfinanceable if the remaining funds cannot complete the outstanding work.
Owner-builder finance
Building It Yourself? Let's Assess the Project Properly.
Owner-builders are welcome—but the project must be properly planned, properly costed and capable of reaching completion.
01
Permits
Owner-builder consent, planning, building and other approvals applicable in the project's state or territory.
02
Experience
Relevant construction, trade, project-management, development or renovation capability.
03
Trade quotations
A detailed trade-by-trade cost plan supported by written quotations and licensed contractors.
04
Construction program
A realistic schedule with responsibilities, stage dependencies, inspections and project oversight.
05
Contingency
Headroom for price changes, delays, variations, defects and unforeseen work.
06
Exit
Sale, completed-property refinance, investment debt or another clearly evidenced repayment event.
Owner-builder requirements are not identical across Australia. The lender will require the permits, consents, training, insurance and approvals applicable to the project's state or territory, together with evidence of project capability and control.
Construction pathways
Finance for the project stage you are actually in.
01
New homes
Construction of a new dwelling on owned or newly acquired land.
02
Duplex & dual occupancy
Attached or detached projects intended for sale, rental or partial retention.
03
Townhouses
Selected small residential developments with a credible feasibility and exit.
04
Major renovations
Structural renovations, extensions and improvements requiring staged funding.
05
Owner-builder projects
Alternative structures for eligible borrowers managing construction themselves.
06
Project completion
Builder replacement, cost shortfalls, stalled work and refinance of existing debt.
Indicative product matrix
Residential construction finance at a glance.
Final terms depend on location, security, costs, valuation, borrower contribution, delivery capability and exit.
PurposeLand acquisition, construction, renovation, refinance and project completion.
Facility sizeGenerally from $300,000; larger facilities assessed individually.
Maximum LVRUp to 80% of lender-accepted value in selected scenarios.
Project typesHouses, duplexes, townhouses, renovations and selected small developments.
Owner-buildersWelcome, subject to experience, approvals, costings and project controls.
TermGenerally 6 to 36 months, aligned to build and exit timing.
InterestServiced, prepaid or capitalised where sufficient headroom is available.
DrawdownsProgressive advances against approved construction stages and verification.
Builder structureLicensed builder, related-party builder or eligible owner-builder.
ExitSale, completed-property refinance, investment debt or another evidenced event.
*Up to 80% LVR is indicative, not guaranteed. Higher leverage may be considered selectively where additional security, substantial borrower equity, strong presales or another suitable credit enhancement supports the transaction.
Four construction controls
Leverage is only one part of the approval.
Construction lenders need the peak debt and the remaining cost to complete to stay supported at every stage—not just on settlement day.
01 / LVR
Loan-to-value
Total debt compared with the lender-accepted current or completed property value.
02 / LTC
Loan-to-cost
Debt compared with land, building, professional, finance and contingency costs.
03 / PEAK
Peak debt
The highest expected balance after drawdowns, interest, fees and approved increases.
04 / CTC
Cost to complete
Remaining undrawn funds plus borrower contribution must finish all outstanding work.
Financial control diagram
Build the peak facility from the real project cost.
The structure combines land debt, construction, interest, fees and contingency. That peak exposure is then tested against accepted completed value and an evidenced exit.
+Current Land Debt
+Construction Cost
+Interest and Fees
+Contingency
=Peak Facility
Compared with
Completed Property Value
Illustrative examples
Standard-builder and owner-builder structures.
Examples are illustrative only and are not offers, approvals or representations of funded transactions.
Expected completed value: $1,500,000, subject to valuation and verification.
How progress payments work
Every draw must protect completion.
STEP 01
Initial advance
Settle the land purchase or refinance an existing mortgage and approved opening costs.
STEP 02
Borrower contribution
Required equity may need to be contributed before lender construction funds are released.
STEP 03
Construction milestones
Typical stages include base, frame, lock-up, fixing and practical completion.
STEP 04
Verification
Claims, invoices, inspections, QS reports and cost-to-complete may be required.
STEP 05
Budget control
Each advance must be correctly applied while remaining funds stay sufficient to finish.
STEP 06
Final draw
Practical completion, occupancy documentation and unpaid costs are confirmed.
Stalled and partially built projects
Completion finance must fund the whole realistic shortfall.
Builder insolvency, cost increases, expiring facilities, variations and unpaid completion works can leave a project without enough funds to reach occupancy.
Providing only enough money for the next invoice can leave the project in a worse position. The facility must address the full cost to complete, defects, contingency, term and exit.
Current as-is value
Completed value
Existing lender payout
Work completed to date
Remaining scope
Detailed cost to complete
Defects and rectification
Replacement builder arrangements
Remaining project term
Total funding shortfall
Contingency
Final exit strategy
Why Zip Funding
Construction credit built around completion.
01
Owner-builders welcome
Projects are assessed on preparation, capability and controls—not automatically rejected.
02
Project-level assessment
Land, completed value, total cost, peak debt, contingency and exit are tested together.
03
Specialist lender access
Private-credit and non-bank pathways may suit construction and completion scenarios.
04
Alternative evidence
Bank statements, BAS, valuations, contracts and project evidence may be considered.
The facility is tested for genuine capacity to achieve practical completion.
07
Direct senior involvement
The project receives direct attention from an experienced property-credit professional.
08
Exit planned early
The structure is aligned to sale, refinance, retention or another evidenced event.
AS
Speak directly with Aaron Sterenzon
Private credit, property and development finance.
Aaron works with homeowners, owner-builders, developers, builders, brokers and advisers seeking residential construction funding. The project is reviewed around land value, debt, costs, completed value, equity, delivery capability, draw structure, contingency and exit.
Then provide: land value · existing debt · construction budget · completed value · amount required · settlement date · exit strategy
Frequently asked questions
Residential construction finance, answered clearly.
Do you consider owner-builders?
Yes. Owner-builders are welcome where the project has the relevant permits and approvals, suitable experience, detailed costings, qualified trades, adequate contingency and a realistic completion and exit strategy.
Can I obtain up to 80% LVR?
Residential construction finance may be available up to 80% of accepted property value in selected cases. Final leverage depends on location, costs, valuation, contribution, capability and exit.
Can interest be capitalised?
Potentially, where sufficient facility headroom is available for the expected construction term and an appropriate delay buffer.
Do I need a fixed-price building contract?
It is commonly preferred for licensed-builder projects. Owner-builder and selected non-standard projects may instead require a detailed cost schedule, quotations, management plan and independent verification.
Can you fund a project that has already commenced?
Potentially. The lender will usually require current value, work completed, invoices, remaining scope, cost-to-complete and a credible completion structure.
Can you help if my builder has become insolvent?
Potentially. A replacement builder or credible completion structure is normally required, together with an assessment of defects, insurance, remaining costs and completed value.
Can I use equity in the land as my contribution?
Yes. Existing land equity may form part or all of the required contribution, subject to valuation and existing debt.
How are construction funds released?
Funds are generally released after relevant work is completed and verified through invoices, progress reports, QS approval or valuation inspection.
What is the usual loan term?
Facilities are commonly structured between six and 36 months, depending on the realistic build period and time required for sale or refinance.
Build with a structure that can reach completion
Bring the land, budget, delivery plan and exit together.
Send the address, land value, debt, plans, budget, builder or owner-builder details, work completed, required amount, completed value and proposed exit.
