Construction Loan


This loan allows customers to borrow anywhere from $50,000 up to $1 million at up to 90 per cent of their property’s value. It is not available to investor borrowers.

The Construction Loan allows customers to make unlimited extra repayments over the life of the loan. They can also redraw on the loan, without incurring a fee, at any time. There is no offset account linked to this loan and repayments can only be made on a monthly basis.

The loan does offer an interest only option that would allow borrowers to make interest only repayments for a period of time, reducing the monthly repayment size but increasing the overall amount of interest paid.

Who is the Construction Loan good for?

The Construction Loan is good for borrowers looking to take out a loan for the specific purpose of funding renovations and new builds. It is also ideal for borrowers who want to pay the loan off as quickly as possible as it does allow for unlimited extra repayments.

The lack of ongoing fees would also appeal to borrowers who are looking to keep down the total costs of their loan. However, there is no offset account attached to this loan so refinancers who are used to using this facility may want to consider how this will affect their decision.

Review - What RateCity says

The Construction Loan is designed specifically for owner-occupier borrowers who are building a new home or undertaking substantial renovations to their current property. The structure of a construction loan is different to a standard loan as the bank releases portions of the borrowed money to coincided with stages in the building process. The borrower will also have to have solid build plans in place and have contracted a Master Builder in order to apply for the loan in the first place. If you have questions about this process you should contact

Once the loan is secured, however, borrowers will be able to make unlimited extra repayments and redraw on the loan as required. While there is no offset facility, and repayments must be made monthly, there are still a range of features and no ongoing fees which could make this loan attractive to borrowers. Construction Loan Options

To find more specific information on the Construction Loan, follow the link below.

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  • Fee-free redraw facility.
  • No ongoing fees.
  • No discharge fee.
  • Not available to investors.
  • Upfront fees charged.
  • Only monthly repayments permitted.

Must have finalised the purchase of your land.

Must have selected a licenced Master Builder to complete the construction.

Must have the building plans.

Must provide a copy of the fixed HIA/MDA Building contract.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Investors
  • Estimated upfront fees: $520.00
  • Discharge fees: $0
  • Ongoing fees: $0

There are upfront fees charged in the form of valuation and settlement fees. These should be factored into the total cost of the loan. After this there are no ongoing fees and no discharge fee at the conclusion of the loan.

  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Monthly repayments
  • Loan allows split interest rate
About is an online lender that provides home loans and car loans. While there are no branches, customers can contact the lender through an online live chat and phone number. By keeping operating costs down, aim to offer their customers low interest rates and fees.

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