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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.

Award-winning loans

Construction Loan

6.64

p.a

Rates from^-

6.24

p.a

Comparison rate*

Build or renovate your dream home
Interest only during construction period
No monthly or ongoing fees
Offset sub-account available after completion
Unlimited additional repayments after completion
Access your account via Smart Money app

Do I Qualify?

Our Google Rating

4.5

611 reviews

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.

Owner Occupier Rates

Repayment Type

Interest Only

Maximum LVR of 90%

Product	Interest rate from	Comparison rate
Construction	6.64% p.a.-	6.24% p.a.*

Key Features

10% deposit minimum	Yes
Up to 30 years loan term	Yes
Available for construction	Yes
Redraw available after completion	Yes

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

Construction home loan eligibility

Do I Qualify?

"We found that loans.com.au still had a very competitive rate and we were happy with the service"

Laura

Home loan customers

Customer reviews

Our Google Rating

4.5/5

611 reviews

Carolyn G.

5/5

19 Jun 2025

“ What a joy to deal with Liam and Emira from Loans.com. I started applying for my car loan last Thursday and by Tuesday afternoon the car dealer was paid. Liam and Emira were absolutely brilliant, professional and very informative. My mortgage comes off fixed next June and I know where I will be moving to. Thank you for everything. „

Vishal K.

5/5

18 Jun 2025

“ The loan process was really easy and quick. Staff is really friendly and keep you updated. Highly recommended. „

Brian S.

5/5

17 Jun 2025

“ The fastest and easiest process I have ever had in regards to any finance. From first chat to settlement in 24 hours and constant communication the entire way! Trina is first class! Emira was SENSATIONAL! BEYOND RECOMMEND! „

Simon L.

5/5

16 Jun 2025

“ I have dealt with Jessica on a recent new home loan application and Jessica and the team was absolutely amazing to deal with. Super quick and kept with in the loop throughout the process. Second to none customer services! „

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

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.

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.

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.

Settle

Your loan will settle, and you’ll enjoy your new loan rate.

Apply Online

Construction loans

How do construction loans work?

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.

Can I use a construction loan to make major renovations to my house?

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.

What do I need to provide in order to apply for a construction loan?

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

What is a progressive drawdown process?

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.

How do I determine different phases of 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.

What is an offset sub-account and what are its benefits?

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!

Home Loan FAQs