Can I get a construction loan if I'm self-employed?

Yes. Some lenders are more flexible with self-employed borrowers than others. We work with specialist lenders who assess applications based on a broader view of your finances, including your business performance, rather than relying solely on payslips.

How much deposit do I need for a construction loan?

Most lenders require a minimum of 10–20% of the total project cost (land plus build). The exact amount will depend on the lender, your financial position, and whether you're using Lenders Mortgage Insurance (LMI). We'll give you a clear picture of what's required before you apply.

What happens if my build goes over the original cost estimate?

Cost overruns are more common than people expect. If your build costs increase beyond your approved loan amount, you'll need to cover the difference from your own funds or apply for additional finance. Having a contingency buffer built into your budget from the start is strongly recommended. We can help you think through this when structuring your loan.

Can I use a construction loan for a knock-down rebuild?

Yes. Knock-down rebuilds are a common use for construction loans, particularly in established suburbs where land is scarce but existing homes are dated. The process is similar to building on vacant land, though there may be additional costs involved in the demolition that need to be factored into your budget.

How long does it take to get a construction loan approved?

Approval times vary depending on the lender and the complexity of your application. Generally, you should allow two to four weeks for conditional approval once all documentation is in order. Having your building contract, plans and permits ready before you apply can speed up the process considerably.

Can I live in a property my SMSF buys?

No. A property purchased by your SMSF must satisfy the sole purpose test, which means it must be held solely to provide retirement benefits. Fund members and their relatives cannot live in a residential property owned by the fund.

How much deposit do I need for an SMSF loan?

Most lenders require at least 20% for residential property and 25–35% for commercial property. On top of the deposit, your SMSF will also need sufficient funds to cover stamp duty, legal fees, ongoing maintenance and cash flow requirements.

Can my SMSF borrow to buy any type of property?

Not quite. There are restrictions, for example, you can't buy a property that requires significant improvements before settlement, as LRBAs must relate to a single "acquirable asset" in its current state. Development projects generally cannot be funded this way.

Can I use my SMSF to buy a commercial property that my business already occupies?

Yes, in many cases. Business real property can be purchased from a related party at market value, making this a popular strategy for small business owners. The fund must lease the property back to your business at commercial market rates, and the arrangement must be properly documented.

Do SMSF loans have higher interest rates than normal investment loans?

Generally, yes. SMSF lending is more complex for lenders, and rates typically sit higher than standard investment loan rates. There are also fewer lenders in this space, which means your broker's ability to access the full market makes a real difference.

Do I need a financial adviser before applying for an SMSF loan?

Yes. Under Australian law, you should obtain advice from a licensed financial adviser before implementing an SMSF strategy. Your accountant, financial planner and mortgage broker all play important roles in making sure the structure is set up correctly from day one.

March RBA Update from Madd

maddteam

March 9, 2020

share this post

maddteam

March 9, 2020

share this post

Subscribe to our newsletter

Stay informed! Subscribe to out newsletter for exclusive updates, offers, and industry insights delivered straight to your inbox.

By clicking Sign Up you’re confirming that you agree with our Terms and Conditions.

Auction vs Private Treaty: What’s the Difference?

Quick answer: A private treaty sale is

June 4, 2026

10 Shocking Mistakes First Home Buyers Must Avoid

First Home Super Saver Scheme Explained (2026)

What is the First Home Super Saver

June 4, 2026

May Real Estate Update

For this month’s real estate feature, we

May 29, 2026

First Home Buyer Market Education

For many Australians, buying a first home

May 29, 2026

What the Federal Budget Means for Australians

Every year, the Federal Budget provides a

May 29, 2026

5 Power Moves to Improve Your Borrowing Capacity

Borrowing capacity is the number that determines

April 30, 2026

Partnering with the Assets Finance Professionals

Ready to turn your homeownership dreams into reality? Our mortgage brokers are here to help. With their expertise and access to a wide range of lenders, we can help you secure the best mortgage deal. Contact us today to start your journey.

George Samios

Founder/ Mortgage Broker

More Than A Mortgage Broker.

Find your perfect home loan with our help. Let's get started.

Ready To Grow Your Wealth Now?

Retirement, asset protection, financial optimisation. We guide you to achieve your dreams.

Like free pizza and financial freedom? Register your office for a Madd Lunch & learn

We help clients secure optimal financing solutions across all industries and asset classes at Madd Commercial.

Want to give your students the best path to home ownership? Book a free workshop at school.

Save on asset finance across Australia. Madd Vehicle & Asset: In-house experts find the best deals for you.

More Than A Mortgage Broker.

Find your perfect home loan with our help. Let's get started.

Don’t Miss Out On Your First Home!

Madd: More than a job, it's a Lifestyle. Join our award-winning team.

March RBA Update from Madd

maddteam

maddteam

Subscribe to our newsletter

Auction vs Private Treaty: What’s the Difference?

First Home Super Saver Scheme Explained (2026)

May Real Estate Update

First Home Buyer Market Education

What the Federal Budget Means for Australians

5 Power Moves to Improve Your Borrowing Capacity

Partnering with the Assets Finance Professionals

Get A Free Assessment

Ready to find the perfect home loan? Start with a free assessment.

Your trusted partner in securing a home loan and refinance.

Finding the best deal for you from over 30 Australian banks and lenders

Providing personalised advice with the best loan options for your needs

Helping you understand the process and what to do next

Ready to take control of your financial future? Start with a free assessment.

Your trusted partner in creating a financial plan.

Building a personalised financial plan aligned with your goals and lifestyle

Reviewing your super, insurance, and investments to maximise outcomes

Helping you stay on track with regular check-ins and future-focused guidance

Ready to find the perfect commercial loan? Start with a free assessment.

Your trusted partner in securing a commercial loan.

Finding the best deal for you from over 30 Australian banks and lenders

Providing personalised advice with the best loan options for your needs

Helping you understand the process and what to do next

Ready to find the perfect asset loan? Start with a free assessment.

Your trusted partner in securing finance for vehicles and assets.

Finding the best deal for you from over 30 Australian banks and lenders

Providing personalised advice with the best loan options for your needs

Helping you understand the process and what to do next