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Construction Loans

A better way to build

Building a new home, or taking on a major renovation?

Building or major renovation projects can be challenging, especially when it comes to cash flow. A Police Credit Union construction loan can make the process easier. We see ourselves as a critical part of your project team, and will ensure funds are available so your project can be completed smoothly.

Our Better Home Loan is available for construction purposes. Check out some of our great rates below:

Interest rate Comparison Rate Minimum borrowing Minimum Deposit
2.69% p.a. 2.74% p.a. $150,000 20%
2.69% p.a. 2.74% p.a. $150,000 10%

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For more Construction Home Loan options, you can check out our Interest Rates here.

What are construction loans?

Our construction loans are straight-forward home loans, with additional building conditions that ensure funds are available when needed. We have a range of loan products we can tailor to suit the needs of your project.

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.

Typical construction project

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

Construction Stage What’s involved?
Groundwork Loan pre-approval, planning, permits, utility connection, insurance, etc.
Foundation Concrete slab / footings and base brickwork
Frame House frame completed, with approval from surveyor / inspector
Lock-up Installation of windows, doors, roofing, exterior fixtures and insulation
Finishings Cabinetry, appliances, plumbing, electrical, flooring, plastering, painting, etc.
Completion Fencing, clearing site and final payment. This may also include additional contracted works (eg. landscaping).

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

Progressive Drawdowns & 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 be certain 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.

More Information

Speak to one of our loans officers today for further information concerning:

  • Documentation needed to arrange your loan;
  • A range of insurances you may need during construction;
  • What happens if there are cost overruns;
  • Our inspection / valuation requirements;
  • Our lending criteria; and
  • Applicable fees and charges.

Free Property Research! Better still.

Searching for a home but need a hand? How about FREE property research reports through CoreLogic RP Data, 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. A FREE property research report, just by asking us!


Use our range of calculators to help you assess your borrowing power, repayments, financial situation and more. Click here.

Don’t forget to use our Home Loan Combobulator to see just how much you could save with a Better Home Loan from Police Credit Union!

Interest Rates & Fees

Find out more about interest rates and fees.

Apply Now 

For more information on our Construction Loans speak to our friendly staff:

Call us during business hours on 1300 131 844email us at [email protected] or drop in to your local branch.

We're here to help you buy a house

If you’re looking to buy your first home, refinance the one you’re in, or start your property investment portfolio, we offer home loans and advice that suit your needs, better.

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