Our Construction loan

You've decided to build your own home and found a licensed builder you trust to realise your dreams. Our Construction home loan options give you the funds you need to enter into a building contract and make it happen.

Our Construction home loan is also available if you're planning on constructing additional rooms, making structural renovations or repairs, and for knock down and rebuild purposes.

Loan options

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Benefits of our Construction home loan

Our Construction home loan is flexible, with funds only being drawn down as your builder completes various stages of your home. Money is paid progressively at key points, e.g. initial flooring, putting up the framework, house lock-up stage and then on completion.

This progressive draw down means you only pay interest on the money you’re using for any particular stage. This lets you add to the value of your home as you build, and increase the equity you have available to finance the next stages.

Conditions

There are some conditions you need to be aware of before applying for one of our Construction loans. These include:

You’ll need a contract from a licensed builder, council approved plans and specifications, and insurance.
You can apply for a Construction loan as an individual, company or trust borrower.
Construction loans must be completed under a fixed price building contract where the contract amount is equal to or less than $1 million
For contract amounts greater than $1 million, constructions loan must be written under a fixed price or cost plus contract
Construction loans in company and or trust names must always be completed under a fixed price building contract.
Construction is restricted to a maximum of 2 units on the same title. The building of more than 2 units should be considered on a commercial basis.
The loan must be secured by an acceptable security type. This means it must be permanently affixed with services connected.
You need to have a transaction account, such as Everyday Account, which we can draw the monthly and final loan drawing interest charges from.
Interest is calculated daily on the outstanding balance and charged to the loan account on the 15th day of each month, the same day we debit your transaction account, and on the date of final loan drawing. You need to ensure that your transaction account has adequate funds on the 15th day of each month and on the day of final loan drawing to cover these payments. You can call one of our Home Loan Specialists on 13 2224 before the 15th day of each month to get an estimate of the accrued interest amount to be debited.
Requests for progress payments must be signed in accordance with your loan’s method of operation. Your principal and interest loan repayments will commence once you’ve moved into your newly built home.

Contact an experienced lender

To learn more about our Construction home loans, or for information on our other home loans contact one of our experienced lenders today.

You can contact us by calling 13 2224 between 8am and 8pm, 365 days a year.

Important information
Applications for finance are subject to the Bank's normal credit approval. Full terms and conditions will be included in the Loan Offer. Fees and charges are payable.