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.
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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
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
3.32%
p.a.
Variable rate
3.76%
p.a.
Comparison rate
Our Complete Variable Home Loan Package is great for construction – no fees apply for progress payments or valuations. Plus, you get up to nine offset accounts and a rewards credit card. 1 Offset Transaction Account must be held in the same name as the loan account. Other exclusions apply. Close
Rates shown are for owner occupiers borrowing up to 90% 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.
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.
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.