This type of loan allows funds to be withdrawn in stages, as you receive progress payment requests from your builder and tradespeople.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. I am looking for a home loan for:

  • The house I live in
  • An Investment property

2. I want to repay:

  • Interest Only

3. I have a deposit of:

  • 20% deposit or more
  • At least 10% but less than 20% deposit

Your interest rate is

2.59% pa

2.62% pa

2.79% pa

2.83% pa

3.34% pa

3.10% pa

3.54% pa

3.30% pa

Interest Rate^

Comparison Rate#

Interest rates displayed are available for applications received from 22 June 2021 for homes over $150,000.



Call us Apply online Enquire Now

Frequently Asked Questions

  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:

  • Copy of the Builder’s insurance policy
  • Copy of the Builder’s licence
  • Copy of the 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 (if required) and then if all is in order;
  • 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. 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:

  • A copy of the Council Occupancy Certificate or equivalent
  • 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 home loan specialists at your local branch

Download our Construction Loan brochure.


  Important Information

* 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, before deciding whether to obtain any of our financial products or services.

Rates current as at 22 June 2021.