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Why choose Greater Bank for a Construction Loan?

Option for a competitive fixed (land only) or variable (construction and/or land) interest rate – you can split the loan.
Loan offset available.
Option for an everyday account with no transaction fees.
Select from a no ongoing monthly fee option with our Great Rate Home Loan or an annual fee with our Ultimate Home Loan.
Flexible repayment options, with the ability to make additional repayments without being penalised + (variable rate loans only).

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How construction loans work

As your construction progresses, funds are released

These staged payments are called progress payments. Releasing money this way allows you to stay on top of the build and make sure you’re only paying for work that has been done.

Great for major renovations

Construction loans aren’t just for building – if you’re seeing the potential in your current home, they can be used to make your major renovation dreams a reality.

What is the construction loan process?

Getting your documents together

To start the construction process, you'll need to have all the necessary documents. These may include evidence that your builder is licensed and has builder's insurance, a copy of the building contract, and approved council plans.   

First progress payment released

After all the requested documents have been provided and approved, we will be able to make the first progress payment to your builder. We'll also give you a heads up to let you know when construction can begin. 

Construction begins

As your build progresses, we'll keep releasing progress payments in stages depending on what part of the build you are up to. There are normally five stages of progress payments, so make sure that all your documentation is up to date throughout your build.

Your home is complete!

Before we release your last progress payment, you may have to fulfil a few last requirements. Normally this may be a copy of an insurance policy for the property, and allowing a valuer or surveyor to inspect the property to ensure works have been satisfactorily completed. 

And ... Congratulations! Your build is complete, and you're ready to move in!

Calculate your home loan repayments

Got a question about Construction and Land Loans?

Construction loans are home loans for those looking to build a new home or complete major renovations.

Construction loans are drawn down in periodic progress payments as the home is being built or renovated.

As a guide, there are usually up to five (5) progress payments for a new home at stages including - Slab poured, framework, enclosed structure, fixing/fit out and practical completion (lock up).

During the course of construction, loan repayments are calculated on the advanced portion of the loan amount.

  • A new repayment will be calculated each time loan funds are advanced and you will receive a letter advising of the details.
  • Interest is only charged on the loan amount advanced.

At Greater Bank, our Construction Loans offer

  • Variable Principal & Interest (P & I)

Fixed Interest rates or Line of Credit facility are not available for construction loans.

View our current home loan interest rates here.

No. We know you’ve got enough on your plate already, so our lenders will do as much of the heavy lifting for you as possible.

Applying for a Construction or Land Loan with us is no different to any of our other loans, and can be done in one of the following ways:

  • Start a conversation with a lender today –

Enquire now Enquire now

At Greater Bank, we're able to lend up to 90% (with LMI) of the value of your property, where your intention is to build a home and live on the premises. 

If your intention is to build a dwelling and rent it out for investor purposes, we're able to lend up to 90%.

At Greater Bank, we can accept deposit amounts for Construction Loans as low as 10%* (plus costs). 

We're able to lend up to 90% of the value of your property with Lenders Mortgage Insurance (LMI).

* owner occupied with principal and interest repayment borrowings only

Yes - absolutely.

Applying for a Land Loan with us is no different to any of our other loans, and can be done in one of the following ways:

  • Start a conversation with a lender today – 

Enquire now Enquire now

Yes, there are some differences between land loans and construction loans.

Construction loans can be used to either build on a piece of land you already own, or to undertake major renovations on your property. The loan is released in progress payments depending on the stage of your build, so there are also specific timeframes that your build has to meet. Construction usually has to be completed within 12 months. 

Land loans allow you to purchase a piece of land, and don't require that you build on it straight away. This means you are able to wait for a while before beginning construction on the land. 

There are also differences in the way interest rates are calculated. For example, our land loans have the option of a fixed or variable interest rate, whereas our construction loans only use a variable rate. 

Land and construction loans can be combined, if you wanted to purchase land and immediately build on it. 

No, unfortunately funds can only be released in instalments, or progress payments, for construction or owner builder loans. 

This is to help you keep track of your construction, and ensure you have enough funds for each stage of the build. 

Progress payments are the way funds are released when you take out a construction loan. Instead of receiving your funds all in one go at the start of your build, you receive instalments throughout construction.

Your build is normally divided into five stages, and you receive a progress payment for each stage. Before you receive your next progress payment, we may ask to inspect the property or request more documentation. 

Constructions loans, are very useful if you want to build your own place. If you already own a piece of land you can take out a construction loan when you're ready to build, or you can combine a land and a construction loan. 

Construction loans aren't only used to build a whole new house, they can also be used if you're planning major renovations!

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Monday to Friday 8:00am – 6:00pm AEST.
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Call 13 13 86

*Conditions, fees and charges apply to all loans. Subject to meeting Greater Bank's lending criteria.

Greater Bank, part of Newcastle Greater Mutual Group Ltd ACN 087 651 992, Australian Financial Services Licence/Australian credit licence 238273 

^Comparison rate is based on $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

#Discounted rates include a discount on Home Loans of $150,000 or over and for owner occupied Home Loans with an LVR 80% or below and for investment Home Loan with an LVR 80% or below and apply to new borrowings only. Discounted rate not available for Line of Credit facilities.

+Additional costs may apply if your loan has a fixed rate.

All new interest-only home loans, attract a 0.10% p.a. margin above the applicable Principal and Interest base rate. All new Line of Credit home loans, attract a 0.10% p.a. margin above the applicable Line of Credit base rate. The all-up interest rate which includes any margins, will be set out in your credit contract. View our Terms and Conditions.