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Loan amount:
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Construction Loan

A construction loan made easy, so you have the freedom to design and build a property to suit your lifestyle.
Multi-award winning
awards awards awards

Construction Loan

7.39
%
p.a
Rates from~~~
7.06
%
p.a
Comparison rate*
Build or renovate your dream home
Interest only during construction
No monthly or ongoing fees
Offset sub-account available after completion
Unlimited additional repayments after completion
Access your account via Smart Money app
Our Google Rating
4.5
447 reviews

Why our construction loan could be the fit for you

Interest only 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

Save thousands on interest over the course of your construction home loan with zero recurring fees or hidden charges.

Work out your loan repayments

Use our home loan calculator to estimate what your monthly mortgage repayments could be.

Your loan details

years
Rate type
Loan purpose
Loan type
Repayment type
Most Popular

Green Construction

Owner Occupied Interest Only Up to 90% LVR
Get rewarded with a discount to your construction loan rate when you go green for your new home.

Interest rate
6.43 %   p.a.
6.68% p.a.

Estimated repayment#
$267.92 per month
Total principal paid
$50,000
Total interest paid
$66,702

Need to know more? Here's the whole offer

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Rates

Principal & interest

Interest Rate:

-

Comparison Rate:

-

Max LVR:

-

Interest only

Interest Rate:

7.39% p.a.~~~

Comparison Rate:

7.06% p.a.*

Max LVR:

90%

Key Features

Up to 30 years loan term

Available for construction

Redraw available after completion

Repayments

Frequency

Monthly

Estimated repayments

$3,491 per month#

The monthly repayment estimate is based on a $500,000 loan over 30 years at 7.39% p.a.

Fees

Application fee

$0

Ongoing fees

$0

Security assessment fee

$230

Government fees

At cost

Settlement fee

$300

Construction admin fee

$120

Construction assessment progress fee

$650

P&I

Interest Rate:

Comp Rate:

Max LVR:

-

-

-

IO

Interest Rate:

Comp Rate:

Max LVR:

7.39% p.a.~~~

7.06% p.a.*

90%

Up to 30 years loan term

Available for construction

Redraw available after completion

Frequency

Monthly

Estimated repayments

$3,491 per month#

The monthly repayment estimate is based on a $500,000 loan over 30 years at 7.39% p.a.

Application fee

$0

Ongoing fees

$0

Security assessment fee

$230

Government fees

At cost

Settlement fee

$300

Construction admin fee

$120

Construction assessment progress fee

$650

2024 WeMoney - Best for Value (Refinance) 2023 WeMoney - Best Value for Variable 2024 Mozo - Expert's Choice for Green Home Loan Gold Award - Best Green Home Loan 2022 WeMoney - Outstanding Customer Service
Our home loan products are recognised & awarded by the Australian financial industry

Construction home loan eligibility

Join our other customers

Could not recommend them enough

Kimberley was wonderful, very informative, and patient. Communication was on point and all-around professional and friendly throughout the process.

Jillian G.
14 Sep 2024

Got what I needed very quickly

Great rates, easy to use, simple process. Got what I needed very quickly

Lachlan J.
12 Sep 2024

I highly recommend this lender

I switched my home loan from a big bank to Loans.com.au and was pleasantly surprised by their competitive rates and sleek web banking platform.

Alex A.
02 Sep 2024

More than exceptional

My experience with loans.com.au was more than exceptional. Ray was nothing short of amazing throughout this process. I highly recommend loans.com.au!

Matthew P.
23 Aug 2024

Very professional and polite

This is a very good organization. Less than a week turnaround, and they were very professional and polite. I recommend this business.

Drew D.
19 Aug 2024

Easy application process

By far the best lender I've ever dealt with. Sooooo much better than any of the big 4. Easy application process and great customer service.

Lisa S.
16 Aug 2024

Highly recommended

It is great experience working with Sonia from Loans.com.au. She is very knowledge, good communicator, follow up and responds quickly which helped to get the approval in few days exceeding my expectation.

Rajesh M.
29 Jul 2024

Very Happy with Jessica's service

Very Happy with Jessica's service so far. She is knowledgeable and efficient, and always available to answer my questions. The portal is also very easy to use. Thank you.

Cristina R.
09 Jul 2024

Would definitely recommend Loans.com.au

Would definitely recommend Loans.com.au, very competitive loan rate, app simple to use, staff easy to talk to.

Roxanne L.
08 Jul 2024

Best experience

We had the best experience getting a loan with the loans.com.au. Everyone we spoke to was friendly and transparent with communications. We really appreciated all the effort the loans.com.au team put into turning around our finance approval <3

Stamatia B.
04 Jul 2024

Outstanding customer service!

I had an excellent experience with loans.com.au while securing my car loan. Rena and Crystal provided exceptional service throughout the entire process. They were knowledgeable, efficient, and always available to answer my questions.

Rohit P.
17 Jun 2024

Unbelievable result

Unbelievable result achieved by amazing team of professionals! I’m really grateful to loans.com.au for saving my property deal and will recommend everyone to use their services. Thank you!

Alexander S.
15 Jun 2024

It's fast & easy to get a loan with loans.com.au

1

Apply online

Simply fill out your 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.

2

Speak to a specialist

You will then have a phone appointment with one of our lending specialists to finalise your application, and help you progress through the loan approval process through to settlement as quickly as possible.

3

Upload documents (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.

4

Settle & save

Your loan will settle and you'll start saving with your new loan rate!

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.

For the application and the finalisation of your construction loan, you’ll need Council-approved plans, a signed and dated building contract, a quantity surveyor report, builder risk insurance, and a copy of the builder’s public liability insurance.

With the completion of each stage of your renovation or build, 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.

When applying for the First Home Owner Grant, you need to:

  • Check your eligibility.
  • Collect the required documents.
  • Complete your application online or lodge the application through an approved representative.

The First Home Owner Grant is typically provided after laying the slab for construction loans.

You could get a construction loan as an owner-builder, but the funds are still released during the stages of construction.

Building delays may affect when the builder gets paid but not the loan itself. If there is a delay during the frame-up stage, for example, the payment to the builder will also be delayed.

When construction is complete, your construction loan will become a standard home loan. You’ll begin paying off the principal loan amount plus interest until the loan term is finished.

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.

While the house is under construction, you’ll make interest-only payments on the amount paid to the builder. When the house is completely built, your construction loan becomes a standard home loan.

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.

There are typically five stages of building a house with a construction loan. We will finance the construction at each stage. Stages may differ from state to state, but the most common building stages are foundation, framing and brickwork, lockup, second fix, and completion.

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.

Every house is different, but one thing is for sure, building a new home is exciting. Before you start, it’s important to know how much it will cost so you know how much to borrow. Various guidelines exist to help you ask the right questions and calculate a construction budget.

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Ready to build or renovate your dream home?

Find out of you are eligible for our construction loan.

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