If you have a turnkey construction contract, where you pay an initial deposit and the remainder on completion, then the loan will be much like a standard home loan. If you have a build-only contract, with payments due at set stages of construction, then the loan will allow progressive drawdowns. Progressive loans have a floating interest rate during the drawdown period and may be available as an interest-only loan for that time. For both types of contracts, lenders use a registered valuation of the completed home when deciding how much they’ll lend, along with your deposit and the repayments you can afford of course. For relocatable and pre-built homes, they’ll only lend based on the land value until the home is permanently attached to the section. For more see our guide to new-build construction loans.