Construction loan
A home loan structured around your building plans, when you're building or renovating.
Green Construction
-
Discounted 5yr green construction rate++ -
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
We’re here to help you get your finance sorted so you can build your home, or complete your renovations.
The process from application to settlement is completely online, over the phone and email, but at every step of the way, you’ll talk to a real person, so we’re here when you may need us.
No matter if this is the first time you’ve built your home or you’re a seasoned expert, we’re here to help.
Our home loan interest rates
| Home Loan | Interest Rate | Comparison Rate | Monthly Repayment | Product Features | Details |
|---|---|---|---|---|---|
Green ConstructionBorrow up to 90% LVR at a discounted rate++ |
5.68% p.a. | 5.94% p.a. | $2,934 |
|
Do I Qualify? |
Solar ConstructionBorrow up to 90% LVR at a discounted rate~ |
5.68% p.a. | 5.94% p.a. | $2,934 |
|
Do I Qualify? |
ConstructionBorrow up to 80% LVR |
6.44% p.a. | 5.68% p.a. | $3,177 |
|
Do I Qualify? |
Your property report
Here’s what you’ll get in the loans.com.au free property report.
The report contains:
A list of the recent sales of properties similar to the one you are looking at.
A list of properties currently on the market, similar to the one you are looking at.
An estimation of the value of the property.
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
As seen on...
Mariana
Meet the team behind Australia's Home of Loans
We have been making it easier for Aussies to access great value home and car loans with our award-winning rates, fast approval and seamless digital experience.
Our construction loan application process
Apply Online
Complete your application through our online platform.
Upload & Track
Submit your documents and monitor your application in real time via our onTrack portal.
Speak to our Specialist
Our lending specialists will guide you through the process and help secure your pre-approval.
Approval & Signing
Review and sign your mortgage documents securely via onTrack.
Settlement
We'll guide you through the drawdown process for your construction loan, with progress payments made to your builder at each stage of construction.
Manage Your Loan
You'll receive your login details to manage your repayments and account details via our Smart Money app.
How Your Construction Loan Works
As each stage of construction is completed, we'll arrange a progress inspection. Progress payments are then made directly to your builder for each stage of completed construction:
Deposit - initial payment to builder, includes payment for council approved plans and building permit.
Base - the land is prepared, foundation is laid.
Frame - completion and approval of house frame.
Lockup - completion of external walls, windows, external doors and roofing so that the property is lockable.
Fixing - completion of internal fit-out, including fixtures, fittings, electrical work, plumbing, internal walls.
Practical completion - remaining work completed, inspections passed, and property ready for handover. Final payment made to builder.
Common construction loan questions
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!
Building or renovating a home?
Your step-by-step guide to construction loans with loans.com.au so you can build your home your way.
We can help you get your finance sorted so you can build your home, or complete your renovations.
Construction loans made easy.
Can You Use a Bridging Loan for Renovations?
A bridging loan is typically used by those selling an existing property while buying a new one at the same time. But did you know that you can also use bridging loans for renovations and to cover construction costs? Read on to learn more about what you can do with bridging finance for property renovations.
How do construction loans work?
Discover how construction loans work, how they differ from standard home loans, and why they’re ideal for building or renovating your home.
How much does it cost to build a house?
If you’re thinking about building your own home, a key element underpinning most of your construction decisions will revolve around the cost. Let's find out how much does it cost to build a house in Australia.
Hidden costs of building your own home
The Ultimate Guide to Building a New Home
How to build a 10 star home in Australia?
Welcome to loans.com.au _
Just in case we lose you, may I ask for your contact details....