Your Guide to the Home Building Process

Thinking of building instead of buying? Below is a friendly, practical summary of what to expect — from setting a budget and securing land and finance, to construction, final checks and converting your construction loan to a standard mortgage.

Overview

Building a house is an exciting but multi-stage journey. While timelines and details vary, the process commonly follows a logical flow: planning your budget, choosing a location and builder, arranging a construction loan, watching your home go up from slab to lock-up, completing final inspections and handovers, and finalising payments and mortgage arrangements. Use this page as a concise roadmap to help you plan and talk confidently with your builder and lender.

Step-by-step summary

1. Budget for your build

Before committing to land or a builder, it’s important to understand how much you can realistically afford. This includes the cost of land, building, site works, council fees, connections, insurance, and a buffer for unexpected expenses. A clear budget will guide your decisions and prevent financial stress later on.

• Tip: Speak with your mortgage broker early to get pre-approval and understand your borrowing capacity.

2. Choose the location and confirm your builder

Next, secure the block of land you want — this might mean buying vacant land or choosing a house-and-land package. Once the land is locked in, you’ll first need your land loan approved. The land loan will typically settle before your construction loan. You’ll then review and approve the builder’s plans and specifications. This stage covers design decisions, obtaining development approvals (if required), and signing building contracts.

3. Apply for a construction loan

With land and building plans confirmed, you’ll then apply to a lender for a construction loan. These loans are structured differently from standard home loans — funds are usually released in stages (progress payments) as the build reaches key milestones. The lender will assess your plans, budget and the builder’s credentials before approving finance.

4. Construction begins

Once finance is approved and deposits are paid, the physical work starts. This phase spans everything from site preparation and laying the slab, to brickwork, roofing, interior finishes and fixtures. Lenders release drawdowns at agreed stages — for example slab, plateheight, roof, lock-up and practical completion.

5. Final walkthrough and defect fixes

When construction reaches practical completion, you’ll do a final inspection (often called the final walkthrough). You should arrange home building insurance and provide signed authorisations so the builder can return to fix any minor defects before you make the last payment.

6. Final payment and loan conversion

After defects are resolved and final approvals are in place, the final progress payment is made to the builder. At this point your construction loan will typically be converted into a standard home loan or mortgage, with regular repayments starting under the agreed terms.

Need help choosing the right loan for a build? Contact us at WestGen Finance and we can get your home building process started on the right foot.