Construction Loans

A construction loan helps to minimise your mortgage repayments until your new home is completed, takes control over payments to the builder and will revert to a normal home loan when your property is completed.


A construction loan helps to minimise your mortgage repayments until your new home is completed, takes control over payments to the builder and will revert to a normal home loan when your property is completed.

The Construction Loan is designed to be drawn down in stages as your property is being built. This results in your monthly mortgage repayments

gradually increasing as construction progresses until the building is finishedavoiding high home loan repayments upfront. There are five drawdowns for a

Construction Loan. These are generally:

  • Slab down – 15% of total construction cost
  • Frame up – 25% of total construction cost
  • External brick work completed – 20% of total construction cost
  • Lock up stage – 20% of total construction cost
  •  Practical completion – 20% of total construction cost

Please note that these may varydepending on your builder and your building contract.

 Until construction is complete mortgage repayments are generally interest only after which they maybecome principal and interest or remain interest only.

Mortgage repayments can be made fortnightly or monthly from your nominated bank account either by Direct Debit or Direct Salary crediting.

The interest only portion is available for up to 5 years.

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