Renovation Refinance › How are renovation funds paid to the builder?

How are renovation funds paid to the builder?

For a simple equity release, the funds are usually available as a lump sum that you manage. For a construction style renovation, the lender releases payments to the builder in stages as the work is completed and verified.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

The payment method follows the loan type. A lump sum top up puts you in control of paying trades and suppliers directly. A construction loan pays the builder in stages, with each release tied to completed work, which protects you and the lender on larger projects. Knowing how funds will flow helps you plan cash flow with your builder.

The key points

A simple top up gives you a lump sum to manage.
A construction loan pays the builder in stages.
Staged payments follow completed work.
The method follows the loan type.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.