Build it up.

Construction loans are a little different to your run-of-the-mill home loan. Here’s a quick snapshot of how they work.

Minimum deposit.

For construction loans, you'll need to have at least a 10% deposit1 of the property’s projected value (Lender’s Mortgage Insurance will apply). 

Progress payments.

A construction loan is funded in ‘progress payments’ that cover the costs for each stage of your home. Payments are sent to your builder as each stage of work is completed.


We do a valuation before making the first and final payments. There might be other inspections along the way just to check everything’s still on track.

Interest-only payments.

While construction is underway you’ll only pay the interest on your loan – you won’t be paying down any of the actual loan proper until you’ve completed construction.

Top ups.

You won’t be able to top up your construction loan until your house is finished – so make sure you’ve borrowed enough to cover all your costs.

Keep us in the loop.

Once building is underway, it’s important you let us know right away if there are any changes to your building contract or council-approved plans.

The legal stuff.

The legal stuff.

  1. Without Lender’s Mortgage Insurance, a 20% deposit will be required. Where an interest only loan is required after the construction is complete, a 20% deposit is required (Lender’s Mortgage Insurance is not applicable). 
Terms, conditions, fees and charges apply. Applications are subject to credit approval.