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Construction Finance for Building Your Dream Home
If you’re planning on building your new home, understanding how construction finance in Australia works is essential. Crestmount Money provides tailored halal construction finance solutions utilising an Ijarah finance structure that are sharia compliant, interest free, and aligned with your Islamic and financial values.
What Is Halal Construction Finance in Australia?
It’s a stage based finance that aligns payments with the home construction process.
Construction finance in Australia is a home finance structure that releases funds progressively as each stage of building your new home is completed. A home construction finance is especially beneficial because you only make payments on the amount you’ve drawn down, rather than the total construction finance amount you’re approved for, helping to keep your repayments down during construction.
How Many Stages Are There in the Home Construction Process?
There are typically five standard stages of construction finance.
The typical home construction process includes several critical phases that dictate progress payments:
- Foundations/Slab: Laying the foundation, levelling the ground, plumbing, and waterproofing the foundation,
- Frame: Building the frame, partial brickwork, roofing, trusses, and windows,
- Lockup: Installing external walls, lockable windows, and doors,
- Fitout: Adding gutters, plumbing, electricity, plasterboards, and partially installing cupboards, and
- Practical Completion/Final Stage: Completing finishing touches, final plumbing, electricity, overall cleaning, and making final payments for equipment and builders.
What Are Progress Payments and How Do They Work?
These are incremental payments triggered at key build milestones.
Progress payments are key features of halal construction finance in Australia. They ensure builders are paid after meeting specific construction stages. Payments are made only on the amount of the funds used.
Before any lender contribution, your own funds must be used first. The last payment is released only after an inspection confirms build completion and certified in accordance with the plan and building approval.
Can You Apply for Construction Finance Without a House and Land Package?
Yes, you can indeed finance the land acquisition and construction separately.
A house and land package is not mandatory. You can rebuild on your existing proprrty known as a knock down rebuild. Alternatively, you may wish to buy land now and engage a builder later, but this may require separate loan structures. Crestmount Money provides a halal construction finance solution, based on your unique needs.
Is Using a Licensed Builder Necessary for Home Construction Finance?
Most financiers, particularly those offering Islamic loans in Australia, require licensed builders.
Most home construction lenders require a licensed builder to ensure the property meets quality and compliance standards. However, Crestmount Money offers access to specialist Islamic finance options in Australia that may consider owner builder applications under strict eligibility criteria. These options may involve reduced loan amounts and additional conditions to maintain compliance standards and protect both parties involved.
What Documents Are Needed to Apply for a Home Construction Finance?
Prepare building plans, signed contracts, and insurance documents.
At Application:
Council approved plans and specs (or, if not yet approved, a copy of those plans which have been, or are to be submitted to Council for approval),
Signed & dated building contract, including the building stages and schedule of payments,
Variations/quotes, if applicable, and
Quantity Surveyor report when requested by the financier’s valuer.
Before the First Builder’s Payment:
Council approved plans and building specs (if not already provided), and
Builders Risk Insurance and a copy of your builder’s ‘Public Liability Insurance’.
Key Benefits of Our Halal Construction Finance Solution:
✅ Halal construction finance options tailored for you home construction needs,
✅ Sharia compliant Ijarah finance structure,
✅ Up to 90% LVR available for eligible, borrowers
✅ Flexible to fund:
- house and land packages,
- Knock down rebuild, or
- Custom builds.
✅ Transparent stage based progress payments, and
✅ Dedicated consultants to support your home construction journey.
Ready to Build Your Dream Home the Halal Way?
Crestmount Money makes halal construction finance simple and accessible.
If you’re planning to build a new home and want to ensure your financing is sharia compliant, Crestmount Money offers specialised halal construction finance solutions through Ijarah finance. Our experts guide you from your initial application through to your final progress payment, ensuring every step aligns with sharia principles and Australian regulations.