Construction Loan | Your Australian Home Loan Experts
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About Construction Loan

A construction loan is a type of home finance designed for people who are building a house rather than buying an existing property. This type of loan does not work the same way as a regular home loan, which can only be used when buying an established property.

Award Mortgage specialises in construction loans. We will determine the best loan structure for your current and future needs so that you can build the home of your dreams.

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What documents do you need to apply for a construction loan ?

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In addition to the usual requirements for a home loan, you will need to provide specific documents in order to qualify for a construction loan.
Building Contract
This is the most important document you need to provide, since it outlines separate construction stages, timelines, and the estimated costs required to build the home.
Building Plan
This is the blueprint of your future home. It includes the size and overall layout of the house you intend to build. This is essential in both ensuring the timetable is realistic and in determining the amount of your construction loan.
Quotations
Your lender will need estimated costs for any additional features of the property, such as solar panels, sheds, and pools. Lenders may consider these factors in order to boost the value of your home.

Construction Loan Products

Non-Resident with Overseas Income

PLAN 1 PLAN 2 PLAN 3

Maximum Loan Term
30 Years
30 Years
30 Years

LVR
Up to 65%
Up to 75%
75% - 85%

Interest Rate

During construction:

  • 8.23%* IO Repayment
  • Comparision Rate: 8.93%*

After Building Complete:

  • 1% construction loading will be removed

During construction:

  • 8.53%* IO Repayment
  • Comparison Rate: 9.23%*

After Building Complete:

  • 1% construction loading will be removed

During construction:

  • 9.03%* IO Repayment
  • Comparison Rate: 9.73%*

After Building Complete:

  • 1% construction loading will be removed

Loan Term

(Interest only)
1 Year Maximum
1 Year Maximum
1 Year Maximum

Maximum Loan Amount
$1M
$1M
$1M

Type of Income
PAYG / Self-employed
PAYG / Self-employed
PAYG / Self-employed

Offset Facility
Available
Available
Available

Risk Fee
0
0.5% (if LVR＞70%)
2.0%-2.5%

*Interest Rates are correct as at 13/03/2023 and subject to change at any time. Comparison rate based off a loan of $150,000 over a term of 25 years. WARNING: This comparison rate applies only to the examples given. Different amounts and terms will result in different comparison rates. Terms, conditions, fees and charges apply and your full financial situation would need to be reviewed prior to acceptance of any offer or product.

Advantages of Construction Loans

Protection

A construction loan offers greater protection for the homeowner. By paying for your home as a series of progressive payments rather than a lump sum advance, the borrower and lender can ensure the builder or contractor is only compensated for quality completed work.

Less Interest

A construction loan allows you to pay less interest over time. With this type of financial arrangement, you are only charged interest on the amount of drawn-down capital and not for the fully approved loan amount.

Lower Repayments

A construction loan enables smaller repayments and more efficient money management. This type of finance is interest-only during the construction phase, which can help you increase your cash flow while you’re working on the home.

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