Top Construction Finance Loan Providers for Businesses in Australia

17 Construction Finance Loan Providers in Australia

Which finance companies offer Construction Finance Loans

As a property developer you will have to understand finance and what the banks look for when lending for development projects, which is very different to how they assess financing a simple buy and hold investment. >LEARN MORE


There is a long list of construction loan providers and each has their niche which they specialise in.  Finding who provides what is just the first step.  Below is a list (in alphabetical order) of the major construction finance providers in Australia. The list is long and extensive so if you'd rather leave the hard work to someone else, feel free to contact us directly. Click here to contact us for a no obligation quote >

AMP Construction Loan


Your dream can become a reality with AMP Construction Loan, designed to cover the construction period for 12 months, while you drawdown the loan using only the funds you need, when you need them (to reflect building phases).
- up to 90% of property value for your loan if you are going to live in the property
- $0 cost to make additional repayments anytime
- 12 months to buy, build, extend or renovate
- drawdown your loan funds only as you need them
- buying land to build on, building on your own land or renovating
- applying for a loan of $40,000 to $850,000
- looking for minimum repayments (interest only).


ANZ Land loans and construction loans


Australia’s most awarded home lender has land and construction loans that could help you get the property you want. And if you’re building, you could save on interest by making progressive payments as they’re requested by your builder or developer, instead of making full payment upfront.

The land loan allows you to purchase land on which you intend to build. ANZ may require you to build your home and investment property within a specific period. Speak to us to find out more information about this.

Here's how construction loans work:

-Make progressive payments - you can progressively draw funds as required during the construction, to help you save on interest.
-Repayments are interest only until the loan's fully drawn down - after that, you may choose to keep making interest only repayments on ANZ Standard Variable loans for a total of up to 5 years. Your interest only period starts from your first progressive payment. If you decide this option is right for you, your repayments will be lower during the interest only period but you will have to repay the principal down the track and you may pay more over the life of your loan.
-Once the loan has been fully drawn down, you can make extra repayments and apply to redraw them.

Bank of Melbourne Building Loan


Features designed specifically to fund the building of your new home. Funds advanced progressively as your builder completes pre-agreed construction stages, potentially saving you on interest during the build. BOMcan help with the scheduling and identifying expenses so payments are made to the builder after each stage.

Bank of Queensland Construction Loans


-Borrow up to 98% of the property value, inclusive of Lender's Mortgage Insurance (Principal and Interest Lending) or
-90% of the property value, excluding Lender's Mortgage Insurance (Interest Only Lending) for Owner Occupiers Borrow up to 90% of the property value, inclusive of Lender's Mortagage Insurance* (Principal and Interest or Interest Only Lending) for Investors
-No application fee
-One free valuation
-Free redraw100% mortgage offset account
-Flexible repayment options - weekly, fortnightly, monthly
-Available for all loan amounts

Bankwest Construction Loans

Here’s how construction loans work

The builder issues an invoice at each stage

There are usually five stages of construction. These are typically known as slab, frame, lock-up, fixing and completion. As each stage is completed, your builder will issue an invoice.

Bankwest make progress payments

With a Bankwest construction loan, you simply have to pass the invoices to Bankwest and authorise them to make the progress payments from your home loan to your builder. Valuations are done at certain stages.

You make repayments

As each progress payment is made, you’ll only need to pay the interest on your loan until construction is finished. Making lower repayments during the construction period could mean you have some spare cash up your sleeve for things like expenses you didn’t see coming or rent to stay somewhere else while you’re building.

When construction is complete, you can start making repayments on both the principal (loan amount) and interest, or you can continue to pay interest only for a period of up to five years.


CBA Construction Loans


You've decided to build your own home and have found a licensed builder you trust to realise your dreams. Commonwealth Bank's Construction home loan options give you the funds you need to enter into a building contract and make it happen.

CBA's Construction home loan is also available if you're planning on constructing additional rooms, making structural renovations or repairs, and for knock down and rebuild purposes.

Whether you dream of building a house or love where you live and prefer to renovate, CBA can help with all the information and support you need. Their guides to building and renovating can give you the guidance you need to get started.

Firstmac Construction Loans


A construction loan can be used to provide finance when you are building a house, completing a major renovation or demolishing and rebuilding. It allows you to progressively draw down on the loan in stages, so you only pay interest on the amount drawn during the construction period.

Heritage Bank Construction Loan


A construction loan is specifically designed for people who are building a house rather than buying a house that is already standing. Most commonly, a construction loan has a progressive draw-down. Essentially, this means that the funds needed for payments of construction costs are released as they occur across the period of building, rather than being fully funded all at once.

There are a number of factors that determine what your borrowing power is, however, one of the main determing factors of this is how much the final property product is valued at. Typically, your construction loan will be interest only while the construction occurs and will then revert to a principal and interest loan once fully funded and the construction is completed.

La Trobe Financial Construction Loans

La Trobe Financial Residential Construction & Commercial Development loan products are popular with PAYG or self-employed borrowers looking to construct a home to live in, or to use as an investment. Their Commercial Development loan may suit borrowers looking to complete small development projects.

Macquarie Renovation Loan

A construction loan works by allowing you to borrow against the value of the property. In this case, the lender will take into account the value of the property after renovation. A renovation only qualifies for a construction loan where there are structural changes made.

If a valuer determines that your renovations will add $100,000 in value to your $800,000 home, the lender calculates your equity at $900,000 minus your current mortgage. The loan amount is generally released as renovations progress to ensure the funds aren't used for other reasons.

ME Bank Construction loan

For construction loans, you need to have a deposit that’s at least 20% of your property’s projected value ready to go. You won’t be able to top up your construction loan until your house is finished – so make sure you’ve borrowed enough to cover all your costs. While construction is underway you’ll only pay the interest on your loan – you won’t be paying down any of the actual loan proper until you’ve completed construction.

NAB Construction Loan

NAB construction loan is a standard home loan – with additional building conditions.

So what’s the difference? Let’s look at two $500,000 loans – one standard, one construction – to see how it works.

If you have a standard home loan – without building conditions – you must draw down the total loan by a certain time. The full $500,000. That means you’re paying interest on the whole loan amount – all $500,000 – from the start.

But if you have a construction loan for $500,000, then you draw down what you need in instalments, to cover the costs of each part of the project. If your first invoice from the builder is for, say, $50,000, then that’s what you draw down. That’s what you pay interest on. You only pay interest on the rest when you draw it down later in the project.

But remember you'll also pay loan interest on any fees and charges debited to your loan account.

Paramount Construction & Development Finance

Commerical & Residential Loan Caveats
Caveat loans are a mortgage or charge over your property. You receive funds and the lender puts a charge over your property to secure the repayment of the debt. They can typically be behind another mortgage over your property. Caveat loans are generally used if you don’t have time to wait, for example you need urgent business cash flow to buy stock or pay a debt or it might be for a property or investment. The cost of missing out outweighs the cost of finance.

They are fast to approve, you can usually obtain a verbal loan approval within hours and settlement can be within days. This proves to be a big help especially if you are in urgent need of money to tide you over some financial emergency.

Residential Construction Loan Lo & Full Doc
These loans are for building a new home. A construction home loan can also include land. Many builders work with lending institutions to provide this type of loan. These loans can be for self employed persons and PAYG employed persons.

Pepper Money Construction Loans

Pepper Essential Construction Loans (Prime) – New construction loan range

- Suitable for clean credit clients who want to build up to 2 properties on 1 title including townhouses and duplexes
- Owner Occupied and Investment purposes allowed
- Up to 95% LVRs (inclusive of fees) on Full Doc
- Alt Doc options available up to 80% LVR (inclusive of fees)
- Borrow up to $1.5m (up to 85% LVR for 2 properties)
- Pepper Easy Construction Loans (Near Prime) – Improved construction loan range

Investment purpose now accepted on Pepper Easy Construction PLUS loans

- Max Loan Amount increased from $850k to $1.25m (1 property) or $1.5m (2 properties)
-Construction of up to 2 properties on 1 title including townhouses and duplexes now allowed
- Max LVR increased from 90% to 95% (inclusive of fees)
- Alt Doc options available up to 85% LVR (inclusive of fees)

Suncorp Construction Loan

At the bank you'll need to ask for a 'construction loan'. Having a builder on board is crucial to your funding as the loan necessitates a signed building contract with a licensed builder. Bottom line: no builder, no loan.

A construction loan is a mortgage agreement designed specifically for those who are building a new home.

Virgin Money Construction Loan

A construction loan is different to loans for purchasing existing properties. Virgin Money's construction home loan is available for new home builds, knock down and rebuild purposes and if you're adding additional rooms, making structural renovations or repairs.

Unlike regular home loans where you typically receive a lump sum of the loan amount at settlement, construction loans are paid out in periodic progress payments at different stages of construction.

Features and Benefits

During the construction period,  you will only need to make interest only payments.  At the end of the construction period your Home Loan will automatically switch to the variable rate loan you chose at application.  If at the end of the construction period you wish to switch to a fixed rate, you will have the ability to select from the rates available on the day and pay a fee to switch.

Westpac Construction Loan

The Westpac Construction Loan progress payment system is simple and efficient. It aims to ensure that the borrower retains control of their finances and that the builder receives prompt payment. The building process is split into standard construction stages.

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