Construction Loans in Brisbane Southside: Your 2026 Guide
Building your dream home in Brisbane Southside gives you something an established purchase rarely can: exactly what you want, where you want it. Construction costs have stabilised after recent volatility, Queensland's first home transfer duty exemption for new homes is now uncapped, and the $30,000 First Home Owner Grant continues for eligible new builds. Owner-builders and those working with registered builders have genuine opportunities right now.
Construction loans work differently to standard home loans. They release funds in stages as your build progresses, which means you only pay interest on money actually drawn down. Whether you're looking at house and land packages in Mount Gravatt- Wishart or custom builds across Rochedale, the right construction loan structure can save thousands in interest during the build phase.
Evergreen Loan Solutions helps Brisbane Southside home builders compare construction loan options across our 50+ lender panel, completely free of charge.
Here's what you need to know about construction loans before approaching a lender.
Key takeaways
- Construction loans release funds in stages so you only pay interest on what's drawn.
- Most lenders require a 20% deposit on the total project cost, including land.
- The $30,000 Queensland FHOG and full transfer duty exemption both apply to new builds.
How does construction loan approval differ from a standard home loan?
Construction loan approval requires two assessments in one application: your ability to service the loan and the viability of your build project. Lenders assess your income, deposit, and credit history exactly as they would for any home loan, but they also scrutinise your building contract, council approvals, and the builder's credentials.
The deposit requirement is typically higher. Most lenders require 20% of the total project cost, though some specialist lenders offer construction loans with 10% deposits for qualified borrowers. Your total project cost includes both the land purchase and construction contract, so a $900,000 build on a $300,000 block means you need a deposit based on $1.2 million total.
How does a construction loan work?
A construction loan releases funds in pre-agreed stages as your build reaches specific milestones. You only pay interest on money actually drawn, not the full approved amount. At completion, most construction loans automatically convert to a standard principal and interest home loan.
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What government grants and schemes apply to new home builds in Brisbane Southside?
The following schemes apply to eligible new builds in Brisbane Southside:
- › Queensland First Home Owner Grant:$30,000 for eligible new build contracts. The 2026-27 Queensland Budget confirmed the $30,000 continues for contracts signed from 1 July 2026, with funding locked in across the four-year forward estimates. Property cap is under $750,000 total project cost.
- › Queensland first home transfer duty exemption: Full exemption on new homes with no price cap from 1 May 2025. Note that from 1 August 2026, this concession is limited to Australian citizens, permanent residents and specified foreign retirees.
- › Australian Government 5% Deposit Scheme (First Home Guarantee): Build with a 5% deposit and no Lenders Mortgage Insurance, up to the $1,000,000 Brisbane Southside price cap. New builds qualify. Income caps were removed in October 2025.
- › Queensland Boost to Buy: Government takes up to 30% equity in new builds with as little as a 2% deposit, up to a $1,000,000 price cap. Limited places available; Round 2 opened April 2026 with SEQ allocation now exhausted. Unity Bank is currently the only approved lender.
How does a mortgage broker in Brisbane Southside help with construction loan approval?
Step 1: Talk to us
Get in touch and we'll assess your build plans, deposit position, and income to identify which lenders offer the strongest construction loan terms for your situation.
Step 2: We review your building documentation
We check your building contract, council approvals, and builder credentials to ensure everything meets lender requirements before lodging your application.
Step 3: We compare construction loan features across our panel
Different lenders offer different progress payment structures, interest rate locks, and conversion terms. We identify which combination works best for your build timeline and budget.
Step 4: We lodge your application with supporting documentation
We prepare your complete application including income verification, deposit confirmation, building contracts, and council approvals to maximise approval chances.
Step 5: We coordinate the approval and settlement process
We liaise with your lender, builder, and solicitor to ensure your construction loan settles on time and progress payments are released according to schedule.
Step 6: We manage the conversion to your permanent loan
At completion, we ensure your construction loan converts to the agreed permanent home loan terms and help you access any available rate discounts or features.
What mistakes do Brisbane Southside builders commonly make with construction loans?
The biggest mistake is assuming all construction loans work the same way. Progress payment timing varies significantly between lenders. Some release funds before work commences at each stage; others require work completion and inspection first. If your builder needs upfront payments to order materials or pay subcontractors, you need a lender whose payment structure aligns with your builder's cash flow requirements.
Builder approval is another critical factor often overlooked until too late. Each lender maintains an approved builder list, and working with a non-approved builder can mean automatic decline or significantly higher interest rates. We check builder approval status across multiple lenders before recommending your best options.
What do construction loan interest rates and progress payment structures look like?
Construction loan rates typically sit 0.20% to 0.50% above standard variable rates. Competitive variable rates start from approximately 5.70% p.a., so construction rates from the sharper end of the market start from approximately 5.90% to 6.20% p.a. During construction, you pay interest only on funds drawn, not the full approved amount, which can mean a substantial saving compared to borrowing the full amount upfront.
Interest only on drawn funds
During construction you pay interest only on the portion of the loan actually drawn, not the full approved amount, which can save thousands over a typical 12-month build.
Progress payment stages typically follow this order:
- › Deposit and land settlement: Full land cost plus initial building deposit
- › Slab down: Typically 15-20% of building contract
- › Frame stage: Another 20-25% when frame and roof are complete
- › Lock-up stage: 20-25% when external walls and windows are complete
- › Fixing stage: 20-25% when internal fit-out is substantially complete
- › Completion: Final payment when the building receives its occupancy certificate
| Like to know which banks & lenders work best for your build project? Know where you really stand and what's possible, so you can plan with total confidence. 5.0 on Google
Local experts
Free service
Prefer to talk now? Call 0421 152 859 |
Frequently Asked Questions
Do construction loans in Brisbane Southside require a 20% deposit?
Most lenders require 20% of the total project cost, including land. Some specialist lenders offer construction loans with 10% deposits, and the First Home Guarantee allows eligible first home buyers to build with just 5% and no LMI, up to the $1,000,000 Brisbane Southside price cap.
Can self-employed borrowers get a construction loan in Brisbane Southside?
Yes. Self-employed borrowers can qualify with two years of lodged tax returns and appropriate building documentation. Some lenders are more flexible with self-employed income assessment for construction loans than others, so comparing across the panel matters.
What happens if my Brisbane Southside build goes over budget?
Your construction loan approval is for a specific amount based on your building contract. If costs increase, you will need additional funds or a loan top-up, which requires lender approval and may affect your loan terms. Having a contingency buffer built into your project budget from the start is strongly recommended.
How long does construction loan approval take?
Construction loan approval typically takes 2-4 weeks longer than standard home loan approval due to the additional documentation review. Building contract assessment and builder approval checks add time to the process.
Can I lock in my interest rate during the construction period?
Some lenders offer rate locks for up to 12 months during construction, protecting you from rate rises. Rate lock terms and availability vary significantly between lenders, which is one of the key factors we compare across our panel.
Should construction loan borrowers use a mortgage broker or go directly to a bank?
A mortgage broker, every time. Construction loan policies differ dramatically between lenders, from builder approval lists to progress payment timing to rate lock options. We compare all these factors across multiple lenders to find your best overall outcome.
What documentation is needed for a construction loan application in Brisbane Southside?
You will need all standard home loan documents plus your building contract, council approvals, building plans, builder's licence and insurance details, and soil reports. We provide a complete checklist tailored to your chosen lender's requirements.
Your Next Steps
Getting your construction loan right means more than finding a competitive rate. The right lender for your build offers approval for your chosen builder, progress payment timing that matches your build schedule, and rate lock options that protect you during construction. All of these factors vary significantly across our 50+ lender panel, and the difference between getting them right or wrong can cost thousands over the life of your loan.
The right construction loan structure depends on your build, your builder, and your timeline, and that's a conversation worth having. Talk to the Evergreen Loan Solutions team or call 0421 152 859, and we'll compare your options across 50+ lenders at no cost to you.
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External Resources
Evergreen Loan Solutions · Eight Mile Plains and Brisbane Southside · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions. · Last updated 4 July 2026
