This type of loan allows funds to be withdrawn in stages, as you receive progress payment requests from your builder and tradespeople. The added benefit is that you only pay interest on the funds drawn down. There is also the added benefit of offset if you wish to take advantage of further interest savings. Please note an establishment fee of $600 applies. Interest only repayments for the construction period* and principal and interest repayments for the remainder of the loan term.
Calculate your rate by using the filter below.
1. What's the purpose of your home loan?
- Owner Occupied
2. Loan repayment type
- Interest Only
3. How much is your deposit?
- 20% deposit or more
- At least 10% but less than 20% deposit
Your interest rate is
Interest rates displayed are available for applications received from 23 March 2020 for homes over $150,000.
We're here to help you find the right loan. Check out the features and benefits below.
Free multiple offset accounts
A complimentary meeting with one of our financial planners1
How does a construction loan work?
|How is the loan drawn down?|
The loan funds will be released progressively in line with your building contract and its payment schedule. These payments are known as “progress payments.” All progress payments will be paid directly to your builder upon your approval.
If you’re contributing funds to the construction, these funds will also need to paid in line with your building contract and its payment schedule.
|What documents do I need to supply Qudos Bank?|
You’ll need to provide us with the following documents:
It’s important you supply these as soon as possible to ensure processing your first progress payment isn’t delayed.
|What do I need to do to arrange a progress payment?|
Before we can make a payment to your builder, you’ll need to provide us with:
When the invoice is received, we’ll:
We’re required to have your property inspected, so please be aware it could take up to 5 business days to process the payment. Cost of the inspection will need to be paid by you at the time an inspection is ordered.
|What do I need to do prior to the final payment being made?|
Once construction is complete, you’ll need to provide us with:
If all items are satisfactory, your final payment will be processed and we’ll let you know what your repayments will be.
|Where can I send my documents?|
All documents can be:
Download our Construction Loan brochure.
* Up to the date the final progress payment is made or 12 months from the date we first advance money to you, whichever is earliest.
Loans are subject to approval. Normal lending criteria, terms and conditions and fees and charges apply. Mortgage insurance is required for home loans over 80% and is subject to approval.
^ Excludes existing loans, switching and variations. These offers can be withdrawn by Qudos Bank at any time.
An establishment fee of $600 applies to this loan. Interest only subject to approval. During an interest only period, your interest only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.
#WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Our comparison rate assumes a loan of $150,000, monthly repayment frequency and a term of 25 years (with the purpose and deposit amount as relevant). The comparison rate is based on a 12 months interest only period, reverting to the interest rate applicable to a principal and interest Low Cost Home Loan with the relevant purpose and deposit amount.
1. All Financial Planners are Authorised Representatives and provide advice under the authority of ClearView Financial Advice Pty Ltd, ABN 89 133 593 012, AFSL 331 367.
You should read and consider the relevant Terms and Conditions and our Financial Services Guide available on our website qudosbank.com.au, before deciding whether to obtain any of our financial products or services.
Rates current as at 23 March 2020.