Planning to construct your new home? Our construction loans provide the flexibility and support you need to finance your building project. Whether you're a first-time builder or upgrading to a custom build, understanding your options is crucial.
Discover how much you can borrow by using our borrowing power calculator. If you're a first-home buyer, check out our first home buyer guide for helpful tips. Refinancing your existing property? Our refinance options can help you access better rates and terms.
Understanding Construction Loans in Australia
Construction loans are specialised mortgage products designed to finance the building of a new home. Unlike standard mortgages, these loans are released in stages, aligned with the progress of your build. This staged approach helps manage risk for lenders while providing funds as needed.
Current Rates and What You Can Expect
As of March 2026, the typical interest rate for construction loans starts from 5.99% p.a., making them an attractive option for many Australian homebuyers and builders. The exact rate will depend on your financial situation, deposit size, and the lender's policies.
Benefits of Choosing a Construction Loan
- Flexible drawdowns aligned with construction milestones
- Potential to convert to a standard home loan upon completion
- Opportunity to finance land purchase and building costs together
- Expert support from lenders experienced in construction finance
Important Considerations
- Approval requires detailed building plans and permits
- Interest is usually paid only on the drawn-down amount during construction
- Loan-to-value ratio (LVR) limits apply; typically up to 80%
- Additional costs may include builder deposits, permits, and inspections
Popular Suburbs for New Builds
If you're considering where to build, explore emerging areas like Sydney suburbs or regional locations. Our guides on first-home buyers and investment properties offer valuable insights into choosing the right location and planning your build.
How to Get Started
Start by assessing your borrowing capacity and creating a detailed budget. Contact us for personalised advice and pre-approval options. Remember, your construction project may take several months, so early planning is essential.
Building your new home is an exciting journey. With competitive rates from 5.99% p.a. and expert support, our construction loans are designed to help you succeed from start to finish.
Ready to take the next step? Contact our team today to discuss your project and get started on your construction loan application. We’re here to help turn your building dreams into reality.