Construction loans in Australia are tailored for financing the construction of a new property or building. These loans are typically short-term and are disbursed in stages or "progress payments" as the construction progresses. The loan amount is usually based on the estimated value of the completed project.

During the construction phase, borrowers usually make interest-only payments based on the amount drawn. Once the construction is complete, the loan is typically converted into a long-term mortgage or paid off entirely. Construction loans are commonly used by individuals, developers, or businesses involved in building residential or commercial properties in Australia.

Renovation loans, also referred to as home improvement loans or refurbishment loans, are designed to finance renovations, repairs, or upgrades to existing properties in Australia. These loans are available for homeowners who want to enhance their primary residence or investment property.

There are different types of renovation loans available in Australia, including:

- Home Equity Line of Credit (HELOC): This is a revolving line of credit based on the equity of your home. It allows you to borrow against the value of your property as needed for renovations.

- Personal Loan for Renovations: Some lenders in Australia offer personal loans specifically for home renovations. These loans provide a lump sum amount that can be used for various renovation expenses.

- Refinance with Cash-Out: Homeowners can refinance their existing mortgage and take out additional funds to finance their renovation projects. This involves increasing the loan amount and using the extra funds for renovations.