Construction Loans

Building a new home or investment property...

Construction loans are available for those who are looking to;

•  Build a new home on their own land

•  Buy a house and land package

•  Renovate their home or investment property

•  Small scale property development of not more than 4 units on a block of land

•  For large scale construction and property development go to our commercial loans website

How Does Construction Finance Work

With most construction loans you make interest only repayments during the construction period. After construction has finished you can choose to make principle and interest payments or continue with interest only repayments.

During the construction phase you only pay interest on the amount you borrow for each stage of the building process. Typically construction is completed in five stages and you draw down on the money at the beginning of each stage. Most lenders charge a progress payment fee at each stage of construction.

Therefore, if the total borrowed amount is $300,000 and you only require $100,000 for the first stage of development then you only pay interest on $100,000 and not the entire loan amount.

Those looking to renovate their existing home may choose an equity line of credit home loan. This loan allows you to use the equity in your home to renovate

Need Help... contact a qualified professional can help you find the right loan best suited to your lending needs.

 

Mortgage Help!

 

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Popular Lenders That Offer Construction Loans

Lender		Home Loan to Look Out For	More Information
Note: Many More Lenders Available. This is just a representation of some of Australia's most longest standing lenders that offer ongoing competitive rates. Please discuss other lender options with your mortgage consultant.
MAJOR BANKS
	ANZ Bank Home Loans	Construction available on variable and fixed rate loans. Progress payment fee is $250 in total
	Commonwealth Bank Home Loans	Construction for all variable and fixed rate loans.  Progress payment fee is $50 per draw and maximum of 5 drawings. Low doc available
	NAB Home Loans	Building loans for all variable, line of credit and fixed rate loans. Low doc not available
	Westpac Home Loans	Variable and fixed rate loans.  Progress payment fee is $95 per draw
	Homeside Lending NAB Home Loans	Variable rates only for construction loans
SMALLER BANKS
	Adelaide Bank Home Loans	No construction available
	AMP Home Loans	Construction Loan only
	Bank West Home Loans	Variable and low doc variable only - $80 per progress payment
	Citibank Home Loans	No construction available - may use equity in existing property for building
	ING Direct Home Loans	Construction Loan only - additional valuation at $200 each
	St George Home Loans	Variable and low doc variable available
	Suncorp Home Loans	Variable loans only available for construction
BUILDING SOCIETIES
	Heritage Bank	Variable and fixed rate loans. $110 per inspection
	The Rock Building Society	Variable, line of credit and fixed rate loans. $110 per inspection
OTHER LENDERS
	RAMS Home Loans	Construction loans offered
	Homeloans Ltd	Construction loans offered

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Need Help?

To find out which lenders offer construction loans recommend that you contact one of our mortgage professionals below. They can show you all the all the hidden costs and restrictions as well as show you the most reputable lenders to choose from.

 

Mortgage Quotes