What is a construction loan?

A construction loan is different to loans for purchasing existing properties. Our construction home loan is available for new home builds, knock down and rebuild purposes and if you're adding additional rooms, making structural renovations or repairs.

Unlike regular home loans where you typically receive a lump sum of the loan amount at settlement, construction loans are paid out in periodic progress payments at different stages of construction.

Download our Construction Loan Fact Sheet

Features & benefits

During the construction period,  you will only need to make interest only payments.  At the end of the construction period your Home Loan will automatically switch to the variable rate loan you chose at application.  If at the end of the construction period you wish to switch to a fixed rate, you will have the ability to select from the rates available on the day and pay a fee to switch.

First progress drawing

You need to make the first progress drawing within 6 months of the date of offer as set out in your loan contract. You must fully use any of your own funds before the first progress drawing is made.

Licenced builder

Construction loan available for licenced builders.

Who we lend to

Our Reward Me Home Loan is available for the following purposes:

  • Individual and joint personal applicants, no companies or trusts
  • Multiple applicants and guarantors
  • Applicants with PAYG income
  • Purchase or refinance of residential property
  • Construction of residential property
  • Purchase of vacant land & construction (home & land package)
  • Property improvements (including renovations)
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Product Essentials Guide

Download our little features and benefits guide and have it handy when you meet with a broker to discuss your home loan needs.

Get ready to apply

Download our Guide to residential construction loans to ensure that you have everything ready to make the application process as easy and quick as possible.

Fees and charges

Below is an outline of some key fees applicable to our Reward Me Home Loan.

Key Upfront fees
Construction Fee $250 – Contract Builder
Allows up to 4 drawings (each additional drawing after this will attract a fee of $100 per drawing)
Settlement Fee $150
Payable for completing settlement of your loans
Valuation Fee First Valuation – Free
Any further valuation will be charged for. The amount of the fee, will be the fee charged by the appointed Valuer and will vary depending on the location and value of the property.
Ongoing fees after settlement of your loan
Home Loan Fee $10
Charged to each loan account on every repayment date (monthly)
For a full list of all fees and charges that could apply refer to our Lending and Deposits Guide to Fees and Charges.

Construction Loan Interest Rate Calculator


Interest rate during construction period:

Interest Only

Comparison rate#:

Loan to Value Ratio (LVR)

Let’s chat

We'll call you

Let us know what time suits you and we'll give you a call.

You call us

Chat to us today about a Reward Me Home Loan please call us on 13 81 51.
We’re available Monday to Friday 8am – 6pm (AEST) excluding public holidays.