What do I need to apply for a construction loan?

Here’s your construction loan application checklist, whether you’re building from scratch or renovating an existing home.

Building contract

This document spells out your agreement with your builder and can come in the form of a fixed price contract, construction tender or owner builder contract.

Fixed price contract

This is the most common form of building contract, where the builder agrees to perform building works for a fixed price.

The fixed price building contract must be signed by you and the builder (except in NSW and ACT, where a signature is not required). It should also include:

Construction tenders

These can be used in place of a fixed price building contract in NSW and ACT only. Construction tenders should also include plans and specifications and a progress payment schedule.

Owner builder

You can also choose to do construction on your own home yourself and/or using sub-contractors.

If you do, you’ll need to show evidence you’d still be able to meet loan repayment requirements if a project builder was employed to do the same work. This is to ensure the project can still be completed if you require a project builder down the track.

As well as plans and specifications and a progress payment schedule, you'll need to provide:

  • A bill of quantities prepared by a quantity surveyor
  • Full costings covering the entire project and specifying completion dates (as per the quotes provided by any suppliers/subcontractors used)
  • The construction timetable.

Contract of sale or offer and acceptance

If your loan is for a block and build, you’ll need to provide a contract of sale/offer and acceptance for the land portion. Your contract of sale/offer and acceptance should include:

  • Your full name as the buyer
  • The date on which you made the offer
  • The address of the property
  • The Certificate of Title for the property
  • The purchase price
  • The payment method for the deposit and the balance
  • The intended settlement date.

Plans and specifications

Plans and specifications should be included in your fixed price building contract or construction tender documentation.


These should be detailed drawings of your house plans, including house measurements, and are usually completed by an architect, draftsman or the builder.

Specifications and inclusions

This is a list of specific items included within the construction contract, like materials, brickwork, carpentry, plumbing, door handles, power points and landscaping.

Schedule of particulars and progress payment schedule

The schedule of particulars should include the builder and owner details, property details, progress payment schedule, contract price (must be fixed / lump sum for a fixed price building contract) and signature page.

Within the schedule of particulars, the progress payment schedule outlines the percentage of funds that will need to be paid to the builder at each stage of construction. There are usually five stages of construction, typically known as slab, frame, lock-up, fixing and completion.

There are some requirements around progress payment schedules. For example, no more than 50% of the funds should be used for the deposit and the slab and frame stages. Chat to your broker or lender to make sure your schedule meets our requirements.

Learn more about making progress payments.

Minimum fit out

You’ll need enough surplus funds to cover some minimum requirements for your home once it’s built, called minimum level of fit out.

The minimum level of fit out required for owner occupied and investment residential homes includes a driveway and boundary fencing. We’ll need to see invoices or quotes for these works when you apply for your construction loan.

Check out our construction loan rates

Our Complete Variable Home Loan Package is great for construction, with no fees for progress payments or valuations.

Need help with your application?

Get in touch with one of our Home Lending Specialists. You can talk on the phone, meet at a branch, or have a Mobile Lending Manager come to you.