Construction Investor Loan
Build or renovate and increase your investment property's value with our construction loan.
Construction Investor 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 choose our Construction loan?
Interest only during construction period
Add an offset once construction is complete
Get updates on progress & valuation
No monthly or ongoing fees
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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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