Refinance / Restructuring
Can You Refinance Construction Loans?
5 min read- Finance Guide
- Updated 2026
Quick answer
Refinancing is usually easier after completion
2 3 paths
During build, at completion, or after conversion
- Main decision points Build stage + valuation
- Best timing Often after completion
- Common hurdles Incomplete works, valuation, policy
1300 421 044
1300 421 044
Key concepts in construction loan refinance
Stage of construction
Lenders want to know whether the build is incomplete, nearly finished, or already complete
Updated valuation
The lender usually needs a fresh valuation based on current condition and sometimes on completion value
Remaining works
Any unfinished items, outstanding invoices and future draw needs affect whether another lender will step in
Loan exit strategy
Some refinances move from construction to long term home lending, while others replace short term or private debt
When construction loan refinance is possible
Timing matters. Refinancing options depend heavily on whether the property is still being built or already complete.
During construction
Possible but more specialised
The new lender may need to adopt the remaining progress payment schedule and confirm the build can be completed
At practical completion
Usually easier to refinance
Once the property is complete or nearly complete, more mainstream lenders may consider the refinance
After conversion
Similar to standard refinance
Once the loan has converted to a normal home loan, the refinance process is often closer to a standard property refinance
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What lenders assess
Lenders normally review the following when assessing a construction refinance:
-
01. Current build stage and progress payments already madeProject status
-
02. Builder invoices, contract and remaining worksConstruction evidence
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03. Updated valuation, serviceability and refinance purposeCore credit assessment
Common problems with construction refinance
Refinance during an incomplete build
Some lenders will not refinance while the build is still underway, especially if there are many stages left or paperwork is incomplete.
Possible solutions include:
Wait until later stage or completion- Use a lender with construction refinance policy
- Provide full contract, plans and progress evidence
Valuation shortfall or reduced end value
If the updated value is lower than expected, the new lender may not offer enough funds to clear the existing debt and remaining build costs.
Possible solutions include:
- Reduce the requested loan amount
- Contribute extra cash or equity
- Refinance after completion if practical
Remaining works shortfall
Missing insurance, unsigned variations, delayed works or unclear remaining costs can stop refinance approval.
Possible solutions include:
- Provide updated plans, invoices and approvals
- Resolve variations and outstanding defects
- Confirm builder and timeline details clearly
Steps to refinance a construction loan
Step
01
Review the current loan, build stage and refinance objective
Step
02
Collect contract, progress draw, valuation and builder documents
Step
03
Confirm the remaining build cost and any unpaid invoices or variations
Step
04
Compare lenders that accept either incomplete or completed construction security
Step
05
Submit the refinance application and complete valuation assessment
Step
06
Settle the new loan and continue draws or convert to long term lending
Speak with a Property Finance Specialist
Property development finance can vary significantly depending on the project size, location, approvals, and the developer's experience.
A specialist can review your project and help determine which lenders may be able to fund it.
Speak with a finance specialist about refinancing a construction loan.
Submit the short form below and a property finance specialist will review the current loan, build stage and refinance options that may be available.
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