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Construction Loan

Build your dream home or renovate with our construction loan

  • Interest-only during construction
  • No monthly or ongoing fees
  • Optional offset sub-account upon completion of construction
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How does it work?

Our construction loan is a great option for you if you’ve bought land and are looking to build, or if you’re completing extensive renovations to your property. So how does it work?

The different phases of a construction loan

1

Before you apply you'll need:

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Finalised purchase

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A Licensed builder

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Building plans

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Building contracts

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Builder’s insurance

Once your loan is approved the 6 construction stages are:

1 phase-icons

Deposit

2 phase-icons

Slab down

3 phase-icons

Frame up complete

4 phase-icons

Lock-up

5 phase-icons

Fixing

6 phase-icons

Practical completion

Once construction is about to finish, and before final payment, you’ll need:

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A copy of your Occupancy Certificate

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A copy of your home building insurance

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Signed authorisation, so the builder can fix anything before the final payment is made.

Final payment

Once the final payment has been made we’ll convert your dream home loan construction to a dream home loan offset variable.

Get started

Apply online today. Or, one of our friendly lending specialists can do the hard work for you and manage your paperwork over the phone.

Either way, we can settle your loan quickly so you can start saving thousands sooner.

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Book a time that suits you to chat with a lending specialist.

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Ready to apply or want pre-approval?

Call us on 13 10 90 or simply start your application online.

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Construction Owner Occupier Rates

Product Name

LVR

Principal & Interest Rate p.a.

Interest Only Rate p.a.

Construction Owner Occupier-

Up to 80%

NA

3.47%
2.96% comp rate*

 

Up to 90%

NA

3.67%
3.09% comp rate*

LVR

Up to 80%

Interest Only Rate p.a.

3.47%
2.96% comp rate*

LVR

Up to 90%

Interest Only Rate p.a.

3.67%
3.09% comp rate*


Want to see more home loan options? Compare our home loans

Top reasons to choose this loan

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Interest Only during
construction

Ensure your interest rate doesn’t change during construction period

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Progress claims &
valuations

Updates on progress and valuation before a portion of your loan gets released and with zero recurring fees.

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No monthly or
ongoing fees

Save thousands over the course of your loan with zero recurring fees.

$0

Application fee

As an online lender, we save in overhead costs and pass those savings directly on to you. So, we don't charge you an application fee.

$0

Ongoing fees

In addition to our great low rates, we don’t charge you any ongoing fees.

$0

Annual fees

Similarly, no annual fees helps save you thousands over the life of your loan.

VIEW ALL FEATURES

Calculate your home loan repayments.



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Our online loan application process

At loans.com.au, we make borrowing simple. We’re here to help you from application through to settlement.

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Apply online

Fill out our application online or talk to one of our Australian-based lending specialists to do the hard work for you.

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Goodbye paperwork!

Login to onTrack and easily upload the required documents. Plus, you can track your application through to approval.

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Settle & save

Our innovative online process gets you to settlement quickly, so you can start saving thousands sooner.

HOME LOAN PROCESS

Frequently asked questions

The comparison rate is lower than the standard rate as the beginning of the construction loan is on Interest Only. After this, the loan rolls out to Principal and Interest at the rollover Investor Principal and Interest rate.
With the completion of each stage of your renovation, we’ll arrange an inspection of the property and then pay the builder directly for the completed work. Each progress payment is called a drawdown.

The number of drawdowns will depend on the agreement between you, your builders, and your lender. Loan repayments in constructions loan are interest-only but once the entire renovation is completed, the construction loan will revert to principal & interest repayments, unless you request to extend the interest-only period.
The 6 construction stages are:

1) Deposit
2) Slab down
3) Frame up complete
4) Lock-up
5) Fixing
6) 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.
Yes, you may be eligible for our construction loan if you are completing extensive renovations to your existing property.
There are a few documents you’ll need to provide in your home loan application. Some of these include:

  • Two (2) most recent consecutive payslips for each applicant
  • Three (3) months bank statements showing regular salary credits, including most recent salary credits with the name of the employer evident
  • Evidence of Salary Sacrifice or Packaging (if applicable)
  • Evidence of Company Vehicle/Car Allowance (if applicable)
  • Six (6) consecutive months of home loan statements showing consistent repayment history (if applicable)
If you are an employee, you'll need to supply a couple of recent consecutive payslips to confirm your income and employment. You will also need to provide up to three months’ worth of bank statements showing your salary paid by your employer and other income. An internet transaction history will generally do.

If you have income paid to more than one account you'll need statements for all those accounts. Alternatively, you could provide your most recent Tax Assessment Notice and a letter from your employer that confirms your salary.

If you're self-employed, the paperwork will be slightly different. When you refinance a loan, you'll need to provide evidence of your ability to make repayments, so your lender will request two years of business and personal tax returns and ATO assessments.
loans.com.au requires a minimum deposit of 10% of the purchase price of the property, or the current value of the property if you are refinancing.

To avoid paying Lenders Mortgage Insurance (LMI), borrowers need a 20% deposit in most cases.
You can see if you prequalify for your home loan using this link: https://www.loans.com.au/pre-qualify/ Once you have completed this, we can generally get preliminary approval to you within 48 hours.
The settlement process is different depending on each individual applicant’s personal situation, but we generally say it can take anywhere between 4 to 6 weeks. To get to settlement, you'll need to apply, speak to one of our lending specialists, upload your documentation, get the property valued, have your loan approved and the documentation delivered and signed, then you'll settle.
We charge a $300 settlement fee plus a valuation fee. The valuation fee for a standard property in a metropolitan area in a major city starts at $220 for properties valued up to $1 million. The valuation fee is not refundable and is payable when the valuation is ordered.
After settlement, you’ll nominate on your direct debit form when you start repayments. Our Customer Care team will also confirm your repayment dates when calling you at loan settlement. Additional repayments into a fixed home loan are allowed and are up to $10,000 per year.
We sure do! Introduce someone to loans.com.au and we'll give you a $450 bonus when they settle their loan with us! They will also get $150 off their settlement fee.

Once your loan application has been submitted, you will be given access to our online portal onTrack. In onTrack, we will collect some more information from you and you can track your application. When your loan settles, you will be given your referral code in onTrack.

You can refer as many people as you like!
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At loans.com.au, we help people into their dream homes and cars.

For the last 10 years, thousands of Aussies have trusted our experienced & locally based team with some of their biggest financial decisions - buying a home, a new car or refinancing to save on interest.

Our customers trust us to support them with low home loan and car loan rates, approved quickly through our easy-to-use online app.

loans.com.au is completely safe and financially backed by Firstmac, Australia’s 12th largest lender. Firstmac has been operating successfully for more than 40 years, and has $14 billion in mortgages under management, as Australia’s leading non-bank lender.

We are also actively involved in our local community with our loans.com.au Women, Children & Community Program designed to support Australian charities on their mission to raise awareness for important causes.

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