How much deposit do I need for a construction loan?

Deposit requirements vary between lenders and depend on your financial situation, the land value, and the build cost. If you own land outright, that may contribute toward your deposit. A mortgage broker can help you compare options across different lenders.

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Construction Loan

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By George Giannakakis · M.Arch · RLA300580 · HIA Industry Judge

Last reviewed: 1 March 2026 · How we research

Construction Loan explained in detail

A loan specifically designed for building a home, where funds are drawn down progressively as construction reaches defined stages (progress payments). You typically only pay interest on the amount drawn, not the full loan. Construction loans convert to a standard home loan upon completion. Deposit requirements vary by lender, so it is worth speaking with a mortgage broker about your options.

Related Terms

Frequently Asked Questions

Common questions about construction loan

Construction loans release funds in stages as your build progresses: deposit, slab, frame, lock-up, fixing, completion. You pay interest only on amounts drawn during construction. The loan converts to a standard principal-and-interest mortgage at completion. You'll need to provide your building contract and plans, and the lender will arrange progress inspections.

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Authoritative Sources

Verify against the binding rules in your state

BuildPilot is an independent home-build CoPilot - we publish guidance, we don't hold a building licence. Every Australian residential build must comply with the National Construction Code plus state-specific Acts and consumer-protection law. The authorities below are the primary sources of truth for the rules that actually apply to your project.

National

National Construction Code (NCC)

Australian Building Codes Board (ABCB)

The primary national set of technical building standards that every Australian build must comply with. Volume 2 covers Class 1 & 10 buildings (most homes).

Australian Standards (AS / AS-NZS)

Standards Australia

Specific material, product and method standards (e.g. AS 3700 masonry, AS 1684 timber framing) referenced by the NCC.

Housing Industry Association (HIA)

HIA

National peak body for residential builders. Publishes the most widely used home-building contracts and consumer guidance.

Master Builders Australia (MBA)

Master Builders Australia

National peak body for general builders. Publishes commercial and residential contracts and industry guidance.

By state & territory

South AustraliaSA

Consumer and Business Services (CBS)

VictoriaVIC

Victorian Building Authority (VBA)

New South WalesNSW

NSW Building Commission (within Department of Customer Service)

QueenslandQLD

Queensland Building and Construction Commission (QBCC)

Western AustraliaWA

Building and Energy (within Dept of Energy, Mines, Industry Regulation and Safety)

TasmaniaTAS

Consumer, Building and Occupational Services (CBOS)

Australian Capital TerritoryACT

Access Canberra (Construction Occupations Registrar)

Northern TerritoryNT

Building Practitioners Board / NT Worksafe (Building)

Links above open the public website of each authority. BuildPilot is not affiliated with these bodies and does not act on their behalf. Information on this page is general - check the current edition of the NCC and the relevant state Act for binding requirements.