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Construction Loan

Access your money as you move through different stages of construction.

Building or major renovation projects can be challenging, especially when it comes to cash flow. Our Construction Loan can make the process easier, ensuring funds are available so your project can be completed smoothly.

What are construction loans?

Our construction loans are straight-forward home loans with additional building conditions that ensure funds are available when you need them. We can tailor our products to suit your needs.

Features of our construction loans include:

  • Availability to fund construction of new homes or major renovations of existing structures
  • 12 months to complete a project (option to extend, if needed)
  • Progressive draw down at each stage of a project, so you’ll only pay interest on funds drawn down
  • ‘Interest-only’ payments applicable throughout a project, reverting to ‘Principal & Interest’ upon completion

What are the benefits?

Construction loans allow you to access a portion of approved funds as your project progresses, rather than the full amount in a lump sum. Funds are typically drawn at each major stage of your project, meaning you’ll only pay interest on what you have drawn down.

‘Interest-only’ repayments throughout the project will also help keep costs down as your project progresses.

No matter how complicated your project may be, we can structure your loan to suit your needs.

Typical construction project

Serving as a general guide, the table below outlines what is involved in the typical building (or major renovation) project.

Construction StageWhat’s involved?
GroundworkLoan pre-approval, planning, permits, utility connection, insurance, etc.
FoundationConcrete slab / footings and base brickwork
FrameHouse frame completed, with approval from surveyor / inspector
Lock-upInstallation of windows, doors, roofing, exterior fixtures and insulation
FinishingsCabinetry, appliances, plumbing, electrical, flooring, plastering, painting, etc.
CompletionFencing, clearing site and final payment. This may also include additional contracted works (eg. landscaping).

Progressive drawdowns and inspections

An ‘as if complete’ valuation (estimated market value of land and proposed building / renovation) will be required once your loan is pre-approved. Follow-up inspections and valuations may be necessary to ensure your project is proceeding as per plan and budget.

We will also work with you to establish a progressive payment schedule, guiding release of approved funds at each stage of construction. Builders’ invoices and progress claim certificates may be required to issue funds to your registered builder. Itemised invoices and receipts along with other conditions, may be required where you are an owner-builder.

Free property report

Searching for a home but need a hand? We can produce research reports, complete with suburb details designed to help you at the negotiating table. The reports cover recent sales details, median house prices, as well as a profile of the suburb you’d love to live in. Simply ask us for a free property report.

Interest rates and fees

Find out more about interest rates and fees.

Get in touch

To find out more, speak to our friendly staff:

Call 1300 131 844 during business hours
Email us at [email protected]
Visit a branch

Mail: PO Box 6074 Halifax Street PO, Adelaide SA 5000

If any of your CDR data is incorrect, please contact us. You can also send a Secure Message via the Inbox in Online Banking or the Banking App. We will not charge any fee for requests to correct customer CDR data.

If you have a complaint or an issue, please read about our complaints process here.