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Building a new home is one of the most significant financial commitments you will ever make. Whether you are planning a custom design, a project home, or a house and land package, having the right construction finance in place from the start makes a real difference. At Harvest Capital Finance, we work with clients across the Northern Rivers of NSW and into the Southern Gold Coast to access construction loan options from banks and lenders across Australia, so you can focus on building your dream home with confidence.
What Is a Construction Loan?
A construction loan, sometimes called a building loan, is a type of home loan specifically designed for people who are building a new home rather than buying an existing one. Unlike a standard home loan where the full loan amount is released at settlement, a construction loan works through a progressive drawdown process. This means funds are released in stages, known as progress payments, as your build reaches key milestones set out in the progress payment schedule.
Because lenders only release funds as each stage is completed, you typically only charge interest on the amount drawn down at any given time, rather than the full loan amount. This can make construction funding more manageable during the build period, particularly when you are also covering living costs or rent while your new home is being built.
How Progress Payments Work
Most construction loans are structured around a construction draw schedule that aligns with the stages of your build. Common stages include the slab, frame, lock-up, fit-out, and practical completion. At each stage, your lender will generally require a progress inspection before releasing the next instalment. This protects both you and the lender by confirming that work has been completed to the required standard before funds are advanced to pay sub-contractors such as plumbers, electricians, and other tradespeople.
Harvest Capital Finance will help you understand how the progressive payment schedule works with your chosen lender, so there are no surprises during your build.
Types of Construction Finance We Can Help With
Construction finance is not one size fits all. Harvest Capital Finance can help you explore options across a range of building scenarios, including:
Each of these scenarios comes with its own lender requirements, and the construction loan interest rate, loan amount, and conditions can vary significantly depending on your circumstances and the type of build involved.
What Lenders Look For
When assessing a construction loan application, lenders will typically want to see a fixed price building contract from a registered builder, along with council plans and any relevant development application approvals or council approval documentation. Most lenders require that you commence building within a set period from the Disclosure Date, so it is important to have your plans and approvals in order before you apply.
Lenders will also assess the land value, the total build cost, and your overall financial position. If you are purchasing land as part of a land and build loan, the lender will want to confirm that the land is suitable for construction and that the build contract covers a fixed price contract to manage cost risk.
Harvest Capital Finance works alongside you to prepare a strong construction loan application, helping you gather the right documentation and present your project clearly to lenders.
Interest-Only Repayments During Construction
Many construction loans offer interest-only repayment options during the build period. Because the loan is drawn down in instalments through the progressive drawdown process, your repayments during construction are generally lower than they will be once the home is complete. Once building is finished, the loan typically converts to a standard principal and interest home loan, sometimes referred to as a construction to permanent loan.
Some lenders also charge a Progressive Drawing Fee each time funds are released at a new stage. Harvest Capital Finance will make sure you understand all the costs involved, including the construction loan interest rate and any fees associated with progress payments or additional payments.
Why Work With Harvest Capital Finance?
Harvest Capital Finance is a relationship-focused finance broker serving clients across the Northern Rivers of NSW and into the Southern Gold Coast. We take the time to understand your build project, your financial position, and your goals, then we access construction loan options from banks and lenders across Australia to find a solution that suits your situation.
Whether you are building your first home, investing in a new property, or undertaking a major renovation, we are on your side throughout the process. We also assist with related home loans, investment loans, and refinancing if your needs change over time. For clients exploring rural or acreage builds, our rural finance team can also provide guidance on suitable land and construction funding options.
Talk to Harvest Capital Finance today about your construction finance needs and let us help you take the next step toward building your new home.
1. Initial Conversation
We start with a no-obligation chat to get to know you and your business. Whether you call us, send an enquiry, or meet us in person, this is your chance to tell us what you are looking to achieve. There are no silly questions and no pressure.
2. Understanding Your Needs
Once we know a bit about you, we dig deeper into your goals, your current financial position, and any challenges you are facing. This helps us build a clear picture of what kind of finance solution will work best for your situation.
3. Researching Your Options
With access to a wide panel of lenders, we do the legwork for you. We compare products, rates, and terms across multiple lenders to find options that genuinely suit your business needs, not just the first deal that comes along.
4. Presenting Your Options
We present you with clear, easy-to-understand options. We walk you through the pros and cons of each so you can make an informed decision with confidence. No jargon, no confusing fine print.
5. Preparing Your Application
Once you choose the right path forward, we prepare and package your application. We know what lenders are looking for, so we present your application in the best possible light to improve your chances of approval.
6. Managing the Process
We handle the back and forth with the lender on your behalf. We keep you updated every step of the way so you always know where things stand. Our job is to make this as smooth and stress-free as possible for you.
7. Settlement and Beyond
Once your finance is approved and settled, our relationship does not end there. We check in to make sure everything is working as expected and we are always available when your needs change or grow. We are here for the long haul.
Harvest Capital Finance is here to help you access construction loan options from banks and lenders across Australia. Book an appointment with our team today and let's work through your build project together.
Book AppointmentThe timeframe for commercial finance can vary quite a bit depending on the type of finance you are seeking, the complexity of your situation, and the lender involved. Some applications can move through relatively quickly, while others that involve commercial property or more complex structures may take longer. At Harvest Capital Finance, we work to keep things moving as efficiently as possible by making sure your application is well-prepared and complete before it goes to a lender. Delays often happen when information is missing or unclear, so we put a lot of effort into getting things right from the start. We will always give you a realistic expectation of timeframes based on your specific circumstances.
Going directly to your bank means you are only seeing what one lender has to offer. A commercial finance broker like Harvest Capital Finance has access to a panel of lenders, which means we can look across multiple options on your behalf. This saves you time and effort, and it means your application is being presented to lenders who are more likely to suit your needs. Banks also have their own criteria and processes, and if your application does not fit their standard mould, you may be declined without much explanation. A broker understands how different lenders assess applications and can help you put your best foot forward. We are also here to explain things clearly so you always know where you stand.
A commercial finance broker acts as a go-between for businesses and lenders. Rather than you having to approach multiple banks or lenders on your own, a broker does that work for you. At Harvest Capital Finance, we talk to a wide range of lenders on your behalf to find finance options that suit your business needs and circumstances. We handle the paperwork, ask the right questions, and present your application in the strongest possible way. Whether you are looking to purchase equipment, buy a commercial property, or fund business growth, having a broker in your corner means you have someone who understands the lending process and can guide you through it from start to finish.
The information required will depend on the type of finance you are looking for, but generally speaking, lenders will want to understand your business financials, your assets and liabilities, and the purpose of the loan. This might include things like tax returns, business activity statements, bank statements, and details about any property or assets you own. For newer businesses, lenders may also want to see a business plan or cash flow projections. At Harvest Capital Finance, we will walk you through exactly what is needed for your specific situation so you are not left guessing. We will also help you understand why each piece of information is required and how it is used in the assessment process.
Harvest Capital Finance works with business owners, investors, and operators across the Northern Rivers of NSW and into the Southern Gold Coast. This includes people in industries like agriculture, construction, retail, hospitality, professional services, and many more. We understand the local area and the unique challenges that come with running a business in regional and coastal communities. Whether you are a sole trader just getting started or an established business looking to expand, we are here to have a conversation about your situation and explore what finance options might be available to you. We take the time to understand your goals before recommending any course of action.
Harvest Capital Finance can assist with a broad range of commercial finance needs. This includes business loans, commercial property finance, equipment and asset finance, trade finance, debtor finance, and construction finance, among others. Every business is different, and the type of finance that suits one business may not suit another. That is why we take the time to understand your specific situation before exploring what options might be available through our panel of lenders. We do not take a one-size-fits-all approach. Instead, we focus on understanding what you are trying to achieve and then working to find a finance solution that fits your goals and your business circumstances.
Yes, absolutely. The Northern Rivers region has a strong agricultural and rural community, and we understand the unique financial needs that come with running a farming or rural business. Whether you are looking at finance for land, machinery, livestock, or other rural assets, we have experience working with clients in this space. Agricultural finance can be quite different from standard business lending, with seasonal income patterns and land valuations that require lenders who understand the rural sector. At Harvest Capital Finance, we work with lenders who have experience in this area and who understand the realities of running a rural operation. We are proud to support the local farming and agricultural community across our region.
Not necessarily. While your credit history is one of the things lenders will look at, it is not always the only factor they consider. Different lenders have different appetites for risk and different ways of assessing applications. Some lenders may place more weight on the strength of your business, the assets you hold, or the purpose of the finance. At Harvest Capital Finance, we will have an honest conversation with you about your situation, including any credit history concerns, before we approach any lenders. We will not put your application forward if we do not think it is ready, as unnecessary applications can affect your credit file. Our goal is to give you the best possible chance of a positive outcome.
In most cases, commercial finance brokers are paid a commission by the lender when a loan is settled. This means that in many situations, there is no direct cost to you for using our services. However, depending on the complexity of your situation or the type of finance involved, a fee may apply, and we will always be upfront and transparent about this before any work begins. You will never be surprised by unexpected charges. At Harvest Capital Finance, we believe in being straightforward about how we operate and how we are remunerated. We are happy to answer any questions you have about our fees and commissions during your initial conversation with us, so you can feel confident about the process from the very beginning.
The process starts with a conversation. We want to understand your business, your goals, and what you are hoping to achieve with the finance you are seeking. From there, we will look at your financial position and identify which lenders and products might be suitable for your situation. We then prepare and submit your application, liaise with the lender on your behalf, and keep you informed throughout the process. Our role is to take as much of the administrative burden off your plate as possible, so you can focus on running your business. We will also explain any terms or conditions in plain language so you can make an informed decision before committing to anything.