Firstmac Construction Loans for Brokers 2026

Firstmac Construction Loan Availability

Firstmac funds residential construction, including vacant-land purchase or refinance with a fixed-price building contract in place at application. Major or structural renovations can qualify where the property is valued on an as-if-complete basis. Its home-loan range also identifies demolition and rebuilding as a construction purpose.

Vacant land without a signed fixed-price building contract is unacceptable security under Firstmac’s policy. A client buying land while deciding what to build has a different funding requirement from a client submitting a contracted build. Resolve that distinction before ordering construction valuations or presenting the proposal as ready to submit.

Brokers access Firstmac through its aggregator distribution and accreditation arrangements. The official Firstmac Broker Tools site is the professional destination for resources and access. Use your Firstmac business development manager (BDM) for a scenario-specific contract or security question.

The Firstmac broker portal guide covers access and application-support channels. The construction assessment still depends on the borrower, property and proposed work.

Borrower, Builder and Security Fit

Firstmac assesses repayment capacity alongside the completed property’s value and location. A satisfactory build budget doesn’t compensate for income that fails its serviceability assessment, meaning the client’s ability to meet repayments. Review existing debts and living costs before treating the maximum security limit as an available loan amount.

Firstmac requires stable, ongoing income supported by its employment and income rules. Self-employed applicants normally need two years of trading history, with specific alternative pathways governed by their circumstances. Its credit policy declines financial-default histories, while a paid telecommunications or utility default can qualify only under the stated conditions.

The Firstmac residential lending policy requires a licensed or registered builder and excludes owner-builders. Check the builder’s registration and insurance against the actual contracting entity. A licence held by someone outside that entity doesn’t resolve a mismatch in the file.

Firstmac’s construction ceiling is 90% loan-to-value ratio (LVR), subject to its security and credit assessment. Lenders mortgage insurance (LMI) applies above 80%, with insurer acceptance also required. The postcode category sets a separate maximum loan per security.

Construction Loan Limits by Postcode Category

Firstmac postcode category	Maximum construction loan per security
Category 1a	$1,500,000
Category 1b	$1,500,000
Category 2	$1,000,000
Category 3	$700,000

These limits apply to eligible residential construction and exclude self-managed super fund lending. Firstmac’s location guide determines the property’s category and any additional restriction. Construction requires a full valuation, so an automated estimate can’t establish the completed security value.

An as-if-complete valuation assesses the proposed finished property. It doesn’t guarantee that every dollar of construction cost adds a dollar of market value. A lower valuation can reduce the supported loan and increase the client’s cash requirement.

Documents and Funds to Complete

Prepare the income evidence and property documents together so Firstmac can assess both repayment capacity and the cost of finishing the build. Use the construction loan requirements guide for the broader cross-lender workflow.

For the Firstmac file, gather the following evidence:

• The borrower’s identification, income documents and current debt details. For salaried applicants, the primary evidence includes two consecutive payslips, with the latest no more than four weeks old.
• Additional income evidence where needed. Above 80% LVR, Firstmac’s primary salaried-income route also requires one month’s bank statement showing employer salary credits.
• Personal tax returns and assessment notices for a standard self-employed application, plus the applicable business returns or financial statements. Mortgage-insured applications require the policy’s full tax-return evidence.
• The land purchase contract and deposit receipts, or ownership and existing-loan records for land already held. Reconcile these with the proposed settlement and refinance amounts.
• The signed final fixed-price building contract, its payment schedule and all agreed variations. Include plans and specifications that describe the same work and finishes.
• Council-approved plans, builder registration and the required contractor, fire and general insurance evidence before the first draw.
• Savings and contribution evidence, together with written quotes for work excluded from the main contract.

Firstmac requires the borrower’s contribution and extras or variations to be paid from their own funds before loan-funded progress claims. Separate cash already paid from cash still available. Land equity can support the security position, but it doesn’t pay an outstanding builder invoice.

For owner-occupied construction, Firstmac can allow some items, such as driveways or landscaping, to be finished at the owner’s expense against reasonable written quotes. The valuation must still include those costs. Investment construction requires a full turnkey contract, with the dwelling ready for occupation at completion.

A Hypothetical Funding Shortfall

Assume a project has $800,000 of land and contracted building costs. Excluded work adds $25,000, transaction and finance costs add $20,000 and the client keeps a $15,000 variation reserve. The total funding requirement is $860,000.

An assumed approved loan of $720,000 and available client funds of $120,000 provide $840,000. The file is $20,000 short. This example uses assumed costs and an assumed approved loan, not a Firstmac quote or borrowing calculation.

Resolve that shortfall before approval by reducing supported project costs or identifying additional evidenced funds. Don’t count the same deposit twice or assume a later valuation will fund the difference.

Draw Requests and Completion

Firstmac releases construction funds in stages after the applicable conditions and progress valuation are satisfied. The valuer’s cost-to-complete estimate controls how much Firstmac must retain, even when the building contract calls for a larger payment.

1. Obtain the credit decision and reconcile its conditions with the signed contract, valuation and available contribution. Loan approval alone doesn’t authorise every builder payment.
2. Complete the settlement and first-draw requirements. Firstmac requires approved plans, builder registration, insurance evidence and the signed final contract before the first draw.
3. Pay the required own-funds contribution and variations, retaining receipts. Firstmac can release a builder deposit at land settlement within its policy limits.
4. Have the borrower authorise the stage payment under the instructions issued for their loan. Send the builder’s claim and supporting evidence through Firstmac’s nominated channel, using its draw-request checklist.
5. Allow Firstmac to assess the claim and arrange the progress valuation. A broker forwards the request, the borrower authorises payment and Firstmac decides whether it can release the funds.
6. Complete the final valuation and release conditions. Firstmac requires the local authority’s Certificate of Occupancy before the final draw.

Firstmac permits a builder deposit release of up to 5% of the fixed-price contract at land settlement outside Western Australia. In Western Australia, the maximum is 6.5%. Reconcile the contract’s deposit demand with the permitted release and the client’s available funds before settlement.

An unpaid variation leaves the own-funds condition unresolved. If work is incomplete, the valuation can leave too little available for the requested payment. Send the revised cost-to-complete position to Firstmac instead of assuming the invoice amount must be released.

If the builder changes, seek Firstmac’s acceptance of the replacement contract and supporting evidence before relying on another draw. The original builder’s approval doesn’t establish the new builder’s eligibility. Keep the client informed of any payment affected while the revised proposal is assessed.

Once construction is fully complete and the loan fully drawn, Firstmac converts it to a standard home loan. Owner-occupied construction is interest-only during the build and changes to principal and interest afterwards. Split options and redraw aren’t available on the construction loan.

Costs and a Different Funding Route

Construction costs include interest on drawn funds and any applicable upfront or inspection charges. Compare the written loan offer and fee schedule against the number of planned stages. Keep these categories separate in the client’s budget:

Cost category	What to establish for the file
Establishment and settlement	The application, legal and settlement charges in the offered product
Initial valuation	The full construction valuation charge and who pays it
Progress inspections	Any construction administration package, included inspections and extra inspection charges
Ongoing servicing	Firstmac advertises no ongoing or annual home-loan fees. Read the offered terms for other transaction or variation charges.
Interest during construction	The rate applied to the progressively drawn balance and the effect of later draws
Insurance and project changes	Any LMI premium, required building insurance and the client’s own variation funding

Obtain the construction fee schedule and draw-request checklist through Broker Tools or your BDM before explaining payment timing to the client. For an existing loan, Firstmac Customer Care is available on 13 12 20. Use the loan’s issued instructions for payment authority and delivery details.

Firstmac limits construction to 12 months from settlement. If the build exceeds that period, its policy adds 0.50 percentage points per year to the applicable construction variable rate. Include delay costs when assessing whether the client can carry the project.

A revised contract can resolve an excluded item or an unrealistic payment schedule if the builder and Firstmac accept the change. An owner-builder project, unsupported location or unaffordable completed loan needs a different funding assessment. Choose another construction lender whose documented criteria fit the actual proposal instead of treating a failed Firstmac condition as a promised exception.