How to finance your custom build (and how we help)

Most people planning a custom home are comfortable with the idea of a mortgage — they've had one before. Then they discover that funding a build works quite differently to buying an existing house, and the questions pile up fast. It's one of the most common places a project loses momentum, purely because the finance side wasn't lined up alongside the design.

Here's a plain-English overview of how it generally works — and how we help make it one less thing to wrestle with. (Quick note first: we're a design studio, not a licensed finance adviser. The below is general information, not financial advice — the actual advice comes from a qualified broker.)

Why a construction loan is different

A standard home loan hands over the money in one lump to buy a finished house. A construction loan is built for a home that doesn't exist yet, so it behaves differently in a few key ways:

It's drawn down in stages. Rather than one payment, the loan releases money in progress payments as the build hits milestones — slab, frame, lock-up, fit-out, completion.
You generally pay interest only on what's drawn. Early in the build, when little has been drawn, repayments are typically lower, rising as the build progresses.
The lender values against the plans. Approval leans on the design, the fixed-price build contract and the projected end value — which is why having the design and documentation in order matters to the finance.
Land and build can be staged together. If you're buying a block too, the land and construction are often structured as one facility.

The order things need to happen in

The most common cause of finance stress is sequence — leaving lending until after the design is done, then scrambling. In practice it works far better to run the two in parallel: get a clear read on your borrowing capacity early, so the design targets a realistic number; then firm up the finance as the design and build contract firm up, so funds are ready when you need to start. Approvals, the build contract and the loan all interlock — line them up together and the project flows; leave finance to the end and it becomes the bottleneck.

Where builds get stuck on finance

Leaving it too late — designing to a number you can't actually borrow.
Valuation gaps — the lender's valuation not matching expectations, especially on unusual or difficult sites.
Documentation — a construction loan needs proper plans and a fixed-price contract; incomplete paperwork stalls approval.
Cash-flow timing — not understanding how and when progress payments are released against builder invoices.

None of these are insurmountable — they're just far easier to handle when someone who does it every day is involved early.

How we help

We can connect you early with our finance partner, SGB Finance — so lending is considered alongside the design from the start, rather than left as a hurdle at the end. Getting the funding structure right early keeps the path from design to build clear, and means the design targets a number that's genuinely achievable for you.

To be clear about the relationship: SGB Finance is a specialist partner firm, not part of Studio 72. We make the introduction and keep the finance and design timelines aligned; the credit advice, the lender relationships and the loan itself are all theirs. It simply means you're not coordinating a separate finance process in isolation while trying to design a home.

Finance, budget and site — the three that move together

What you can borrow shapes your budget; your budget shapes the design; and the site shapes what it all costs. Handled separately, they fight each other. Handled together — which is how we run a project — they line up. Worth reading alongside this: working with your budget, not against it, and why site analysis saves you money. If you're funding a rebuild specifically, there's more in knockdown rebuild: is it right for your block?

Line up your finance early.

Start your project with us and we'll connect you with SGB Finance up front — so funding and design move together, not one after the other.

Start your project Read: budgeting your build

Frequently asked questions

What is a construction loan?

A loan designed for building rather than buying. Instead of one lump sum, it's released in progress payments as the build reaches milestones, with interest generally charged only on what's been drawn.

How is financing a build different from a normal home loan?

A normal home loan funds a finished house in one payment. A construction loan funds a home in stages, is assessed against the plans and build contract, and can bundle land and construction together.

When should I sort out finance?

Early — in parallel with design, not after it. Knowing your borrowing capacity up front keeps the design realistic, and firming up finance alongside the contract means funds are ready when you break ground.

Does Studio 72 provide the finance?

No. We're a design studio, not a licensed finance adviser. We connect you with our partner SGB Finance and keep the timelines aligned — the credit advice and the loan are theirs.

Can you finance a knockdown rebuild?

Yes — a rebuild has its own funding rhythm (demolition, then a staged construction loan), which is exactly the kind of thing worth structuring early with a specialist.

How to finance your build (and how we help)