Construction Loan
A construction loan made easy, so you have the freedom to design and build a property to suit your lifestyle.
Construction Loan
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Build or renovate your dream home -
Interest only during construction period
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No monthly or ongoing fees
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Offset sub-account available after completion
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Unlimited additional repayments after completion
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Access your account via Smart Money app
Why our construction loan could be the fit for you
Interest only during construction period
Pay interest only repayments on your home loan during the construction period so you can budget with confidence.
Add an offset
Once construction is complete, you will then have the option to add a 100% offset sub-account to your home loan.
Updates on progress
You’ll receive updates on progress and valuation before a portion of your loan gets released and with zero recurring fees.
No ongoing fees
Enjoy no ongoing fees on your construction home loan.
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Construction loans
A construction loan is for anyone building or renovating a home, instead of buying an established property. They offer cashflow flexibility since they let you progressively drawdown money throughout the construction process, ensuring you only pay interest on the amount you use.
Yes. Whether it's a small property extension or a total knock-down and rebuild, a construction loan lets you draw funds from the loan progressively as your invoices arrive. This ensures you save money, as you only pay interest on the progress payments made until the loan is fully drawn.
To apply for this loan, you’ll need to have:
- Finalised the purchase of your land
- Selected a licensed Master Builder
- Building plans
- Copy of the fixed HIA/MBA Building contract
Before construction begins, your builder will prepare a contract outlining each construction stage and associated costs. We then progressively drawdown your loan to pay the builders' costs at each stage. Generally, your construction loan will be interest-only repayments while your home is being built.
The 6 construction stages are:
- Deposit
- Slab down
- Frame up complete
- Lock-up
- Fixing
- Practical completion
A progress inspection will be carried out by an independent valuer for each building stage. Once your builder sends the invoice to us, a progress inspection will be ordered.
An offset sub-account isn't available on your construction loan but is after the construction loan ends.
An offset sub-account is linked to your home loan and helps reduce the interest you pay. Instead of earning interest like a regular savings account, the balance in your offset reduces the portion of your loan that accrues interest. This can help you pay off your loan faster and save on interest costs.
Key things to know:
- It's a sub-account of your loan, not a separate deposit account.
- Funds in the offset sub-account are not covered by the government deposit guarantee.
- The offset cannot exceed your home loan balance.
If you have any questions, our friendly team is here to help!
Sarah
Lending Specialist
Real humans based in Brisbane, Australia
As an experienced lending specialist, Sarah and our team can answer all your questions to get you on track.
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