The comparison rate identifies the true cost of a loan. The reason the comparison rate is lower than the standard rate is because the loan will begin on a higher interest rate due to being construction and on interest only repayments. Once the construction period and interest only repayment period is complete, the loan will revert to a standard variable, principal and interest rate, which will likely be lower than the construction interest only rate.

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.

We can provide approval for applicants in as little as 2-3 days, pending the customer's individual circumstances and all correct documentation has been provided. It's important to note that this is not a 'one size fits all' number, and the approval time will depend on each individual applicant's circumstances.

We'd always advise our customers to have the right documentation ready at application stage, so you can move forward with your application as quickly as possible. For more information for documents required for a build:
What documents do I need to buy or build a home in Australia?

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.

A property report is helpful if you’re looking to build a property as it can help determine the right area to build in.

Our property reports provide information such as Properties sold in the area, Market comparison, Median sale prices in the area and Suburb insights.

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

After the construction is complete, you have the option to add a 100% offset sub-account to your loan. Many people choose to do this to help pay their home loan faster and save thousands on interest payments. For an extra 0.10% to the loan, you can add a 100% offset sub-account with online, ATM, EFTPOS & Visa debit card access to your money, plus unlimited free redraws. More information on adding an offset here.

You can get your dream home at a great low home loan rate because of our online model. We don't have to pay for branches or broker commissions, which means we are able to pass our savings directly on to you through low home loan rates and and no ongoing, annual or monthly fees.

Simply fill out your application online by entering some of your details here

After your application is complete, use our app onTrack on your desktop or device to add your documents such as payslips, and details of your existing loan.

In the onTrack app, you can track the progress of your application. For more information for documents required for a construction loan:
What documents do I need to buy or build a home in Australia?

Yes, you may be eligible for our construction loan if you are completing extensive renovations to your existing property.