Construction loans

Building a home or planning a major renovation? Home building loans – also known as construction loans – are designed to help you get there.

How construction loans help you build or renovate

The money is released in stages as construction progresses

This is known as making progress payments. It helps to monitor the build and ensure you’re only paying for completed work.

You only pay the interest on your loan until construction's done

You don't have to make repayments on your full loan amount during construction, which means you could have extra money handy for unexpected expenses or rent to stay somewhere while you're building.

Great for big renovations

They aren't just great for building a new home – a construction loan can be good for your next major renovation.

Our construction loan rates are something to smile about


Variable rate


Comparison rate

Our Complete Variable Home Loan Package is great for construction – no fees apply for progress payments or valuations. Plus, you get the flexibility to add up to nine offset accounts and an eligible credit card. 1 Offset Transaction Account must be held in the same name as the loan account. Other exclusions apply.

Rates shown are for owner occupiers borrowing up to 95% of the property value and paying interest only until construction’s finished. For loans of $200k+. Understand the comparison rate. Construction loan rates are based on the percentage of the property value you borrow and the interest only term. Our Home Lending Specialists can tell you more about our rates.

The construction loan process

Our Home Lending Specialists can help you choose one of our variable rate construction loans. Here’s how they work…

The builder issues an invoice at each stage

There are usually five stages of construction, typically known as slab, frame, lock-up, fixing and completion.

As each stage is completed, your builder will issue an invoice.

We make progress payments

Simply pass the invoice to us and authorise us to make the progress payments from your loan to your builder. Valuations are done at certain stages.

Find out more about progress payments.

You make interest only repayments

As each progress payment is made, you'll only need to pay the interest on your loan until construction is finished.

When construction’s complete

You start making repayments on both the principal (loan amount) and interest, or you can continue to pay interest only for three or five years – you choose the interest only term when you apply for the loan.

Home building and renovating guides

From budgeting your costs to picking the right builder.

Benefits and things to keep in mind to help you decide if building a home is the right move for you.

Find out about your financial options and things you should consider.

It really depends on the size of the project and your budget.

Whether you're buying land or a property, check out our home buying guidance for every step.

Thinking about home insurance?

Home insurance is essential when getting a home loan. We can arrange home insurance packages through our partner CommInsure that are tailored to your needs.

We’re ready to help

Your very own Home Lending Specialist will respond within one business day. You can talk on the phone, meet at a branch, or have a Mobile Lending Manager come to you.


What’s the comparison rate?
It’s a tool that can help you identify the truer cost of a loan. It’s calculated using a standard formula that includes the interest rate, as well as certain fees and charges relating to a loan (not all fees and charges are included).

Comparison rate warning:
Comparison rate is calculated on the statutory assumption of $150,000 loan over 25 years but the minimum required loan amount is $200,000 for the Complete Home Loan Package. Different rates apply for different loan amounts and may depend on the duration of a fixed rate period or the ratio of the loan amount to the property value. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Complete Variable Home Loan Package:
Lending and eligibility criteria, and fees and charges apply – including an annual package fee of $395. Available to individuals and eligible family trusts. Minimum initial loan size $200,000. Rates are subject to change. Package consists of an eligible home loan, one optional eligible credit card per customer and up to nine optional Offset Transaction Accounts per loan.

  1. Offset Transaction Account must be held in the same name as the loan account. Other exclusions apply.