Construction Loan
A construction loan is a loan designed to assist funding of a new home’s construction. Getting a loan for a home that doesn’t exist yet is a bit trickier, so a construction loan works in conjunction with the building process and helps you pay for it
How does a construction loan work?
Construction loans, also known as building loans, function very differently to a standard home loan. They typically charge interest-only repayments for the duration of the build, which is initially set at 12 months in most cases. This is to keep your repayments to a minimum during construction, before reverting to a principal and interest loan at the end, known as the ‘end loan’. A construction loan is a loan designed to assist funding of a new home’s construction. Getting a loan for a home that doesn’t exist yet is a bit trickier, so a construction loan works in conjunction with the building process and helps you pay for it
An bigger difference between construction loans and home loans is how your repayments are calculated. A standard home loan charges you interest on the full loan amount, but a home construction loan divides your loan into stages based on what part of the building process is occurring, a method known as progressive draw-down or progress payments.
Associated Banks
Other Services
Owner-occupier home loan and/or First Home Buyers
Our experience will explore First Home Owners Grants (FHOG), potential stamp duty exemptions, limited equity and Family Pledge assistance products.
Explore More
Investment home loan
An investment home loan is a home loan for people looking to buy a property with the intention of renting it out and profiting through a rise in the property’s value.
Explore More
Refinance Home loan
If you’re one of many that feel like they’re getting a basic deal on your home loan, you have the power as a borrower to do something about it.
Explore More
Guarantor Home loan
A guarantor home loan allows a close relative (typically a parent) to use the equity in their home as security for part or all of your mortgage.
Explore More
Low doc home loan
It is a home loan available to those that don’t have the correct proof of income documents available at the time or can’t get them at all (Low documentation)
Explore More
Bridging Loan
Sometimes, you find your dream home and you want to secure it before someone else swoops in – but you don’t have the funds to purchase it because the money hasnt settled on your old home.
Explore More
Line of credit Loan
A line of credit loan might be a suitable choice for borrowers looking to access some of their built-up equity to satisfy short or long-term financial needs.
Explore More
Reserve Mortgage
A reverse mortgage is a type of equity release product (ERP) that essentially allows older Australians to borrow money by using the equity in their home as security for the loan.
Explore More