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This type of loan allows funds to be withdrawn in stages, as you receive progress payment requests from your builder and tradespeople.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.

Available for Low Cost Home Loan, Qantas Points Home Loan and Variable Rate Home Loan.


How does a construction loan work?

  How is the loan drawn down?

The funds from the loan account which are available to cover the cost of construction, will be drawn down 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, you’ll need to pay these funds to the builder at construction start up and before we start drawing progress payments from the loan account.

  What documents do I need to supply Qudos Bank?

Once you’re ready to start building, you’ll need to provide us with the following documents:

  • Copy of your Builder’s insurance policy
  • Copy of your Builder’s licence
  • Copy of your executed Fixed Price HIA/MBA Building Contract, which must include all components of construction
  • Copy of Council approved plans and specifications

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:

  • Confirmation that your cash contribution towards the construction costs have been utilised (if applicable)
  • An invoice from your builder, signed by all borrowers stating that you authorise payment.

When the invoice is received, we’ll:

  • Have the property inspected and then;
  • Draw the progress payment from the loan account and pay your builder directly.

We’re required to have your property inspected, so please be aware it could take up to 5 business days to process the payment.

  What do I need to do prior to the final payment being made?

Once construction is complete, you’ll need to provide us with a copy of your Council Occupancy Certificate or equivalent plus a copy of your home building insurance. 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:

  • Emailed to
  • Faxed to 02 9582 3400
  • Mailed to Locked bag 5020 Mascot NSW 1460 Attention: Lending Operations
  • Sent to one of our lending specialists at your local branch

Download our Construction Loan brochure.


  Important Information
Loans are subject to approval. Normal lending criteria, terms and conditions and fees and charges apply. You should read and consider the relevant Terms and Conditions and our Financial Services Guide available on our website, before deciding whether to obtain any of our financial products or services.



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