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Victoria | Lydian platform, delivered in partnership with Clark Finance Group
CHANGE LOCATION
Balwyn North shares the school catchment appeal of its neighbour with a slightly more suburban feel and larger blocks toward the Koonung end. It is a strong family market with a significant amount of rebuilding underway.
Balwyn North has seen more rebuilding than almost anywhere else in the inner east. Post-war homes on generous blocks are steadily being replaced with substantial new houses, and that changes what the lending looks like.
A rebuild is a two-part exercise. You buy the existing property, then fund construction in stages against approved plans and a fixed price contract. The mistake we see most often is treating those as separate decisions, discovering at construction stage that servicing the combined position does not work. Both need to be assessed together at the outset.
The other pattern is buyers with income that does not fit a standard payslip, whether that is business income, overseas earnings or family structures. Balwyn North has a lot of this, and it is where the difference between lenders becomes most pronounced.
Purchase and construction assessed together, so the finished position is serviceable rather than a surprise.
Business, overseas and family-structured income. Lenders treat identical figures very differently.
Zone demand keeps stock scarce. Proper approval before bidding is what separates buyers.
Whatever stage you are at, there is a path through it. Pick the one that sounds like you.
Some lenders will assess the whole plan upfront, which is far preferable. Others treat them separately, meaning you take on the purchase without certainty the construction will be approved. Knowing which lenders handle it cleanly is worth a great deal on a project like this.
Cautiously and inconsistently. Many lenders will use only sixty to eighty per cent of foreign income to allow for currency movement, and some restrict which countries and currencies they will accept. A few decline foreign income altogether. If it is a significant part of your position, this single factor may determine which lenders are available to you.
Council approved plans, a fixed price building contract with a registered builder, the builder’s insurances, and a schedule of progress payments. The lender values the property against the completed plans. Getting these assembled before applying speeds things considerably.
Once the house is demolished the security is vacant land, which lenders lend against at lower ratios than a house. That is one reason to have construction finance arranged before demolition rather than after, so you are not holding land you cannot borrow adequately against.
Book a free consultation and we will walk you through your options, what you can borrow, and what it will cost.
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Serving clients across Australia.
Authorised Representative no. 525 778
Specialist Financial Group Australian Credit Licence no. 387025
Lydian Financial Services Victoria
Suite 1/103 Grimshaw Street, Greensborough VIC 3088, Australia
Level 12, 15 Collins Street Melbourne VIC 3000, Australia
Copyright © LYDIAN FINANCIAL SERVICES PTY LTD 2026. All Right Reserved.