Construction Loan
Build your dream home or renovate with our construction loan.
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
Before you apply you'll need:
Finalised purchase
A Licensed builder
Building plans
Building contracts
Builder’s insurance
Once your loan is approved the 6 construction stages are:
Deposit
Slab down
Frame up complete
Lock-up
Fixing
Practical completion
Once construction is about to finish, and before final payment, you’ll need:
A copy of your Occupancy Certificate
A copy of your home building insurance
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 construction loan to a standard variable loan, which will include both a redraw facility and offset-sub account.
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.
Top reasons to choose this loan
Interest Only during
construction
Pay interest only repayments during the construction period.
Progress claims &
valuations
Updates on progress and valuation before a portion of your loan gets released and with zero recurring fees.
No monthly or
ongoing fees
Save thousands over the course of your loan with zero recurring fees.
Construction Loan Rates
Construction Owner Occupier Rates
Construction Owner Occupier-
Up to 80%
NA
7.72%
6.94% comp rate*
Up to 90%
NA
7.92%
7.33% comp rate*
Construction Owner Occupier-
Interest Only
Variable rate p.a.
Comp rate p.a.*
Variable rate p.a.
Comp rate p.a.*
Want to see more home loan options? Compare our home loans
Want to see more home loan options? Compare our home loans
$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.
Home loan repayment calculator
Use our home loan calculator to estimate what your monthly mortgage repayments could be. Whether you're refinancing or just wanting to understand how much you can afford, all you have to do is enter how the amount you would like to borrow, interest rate, home loan term, payment frequency, and repayment type (either principal & interest or interest-only).
Your estimated repayments are
Get a loans.com.au super low rate you’ll be celebrating for years!
Our construction process
Application
Simply fill out your home loan application online by entering some of your details, or chat to one of our friendly lending specialists over the phone and they can complete your application for you.
onTrack
After your application is complete, use our system we call onTrack on your desktop or device to add your documentation such as payslips and bank statements, and track the progress of your application.
Speak to specialist
You will then have an appointment with one of our lending specialists to organise your preliminary approval of your loan, and help you progress through the home loan approval process through to settlement as quickly as possible.
Signing document
Check onTrack to received your final approval, mortgage documents and loan agreement. You must sign these and return them in to onTrack.
Settlement
Your loan will settle and you’ll start saving with your new loan rate, and get your keys to your new dream home!
Access your account
Once settlement is complete, we will send your login credentials to start managing your payments in the Smart Money app.
Fund construction
Now we start to pay for each stage as it is completed. As each stage is finished, we arrange a progressive inspection and then, if everything is in order, we pay the builder directly. The stages of the construction loan are listed below.
-
Deposit - Paid to the builder to commence work
-
Base - Concrete slab complete or footings and base brickwork complete
-
Frame - House frame complete and approved by inspector
-
Lockup - Windows/doors, roofing, brickwork, insulation
-
Fixing - Plaster, kitchen cupboards, appliances, bathroom, toilet, laundry fittings/tiling, heating, fixing/internal doors, etc., plumbing, electrical, painting
-
Practical completion - Fencing, site clean-up, final payment to builder
Frequently asked questions
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.
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.
- 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 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.
To avoid paying Lenders Mortgage Insurance (LMI), borrowers need a 20% deposit in most cases.
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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Our customers trust us to support them with low home loan and car loan rates, approved quickly through our easy-to-use online app.
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