Help & support
Whether you’re completing major renovations, knocking down an existing property or re-building and starting fresh, a Construction Loan may meet your needs.
For example: Five stages of a standard house construction include:
For more information on what to expect, see our step-by-step Construction Loan timeline.
Keep in mind each construction journey is different and all payments to your builder are made after the relevant stages are completed. Book an appointment with your Home Lending Specialist or Broker and they can guide you through your individual situation.
Construction Loans have Interest Only payments during the construction period, meaning your repayments are lower throughout this time.
You can make additional payments into your Construction Loan at any time. This reduces your loan balance and means you may pay less interest.
You could save on interest by linking to an offset account. The money that sits in your offset account, and you will only be charged interest on the difference.
Draw down the loan during at various stages of the build (known as Progress Payments), rather than drawing the whole loan amount upfront. Your Progress Payment schedule will typically happen across 5-6 stages during the construction period.
Understand the process of building a new home. Get a comprehensive guide to construction loans.
Make an appointment with one of our Home Lending Specialists to discuss whether a Construction Loan may be right for you and your circumstances.
A Construction Loan is only available for houses built and kept for personal investment or residential purposes and not for building dwellings that you plan to sell immediately. Speak to your Home Loan Specialist to discuss your construction requirements.
Your build is funded through a series of Progress Payments and paid to your builder after each stage of construction is completed. Your builder will provide you with an invoice, and once you’re satisfied that the work has been completed, sign the invoice and forward it to your Home Lending Specialist or Broker who will then arrange for your builder to be paid.
A Progressive Drawing Fee applies for each Progress Payment request made. These fees will be added to your home loan once the final payment has been made.
Construction must commence within twelve months from the Disclosure Date on your loan contract and be completed within 24 months from the date the first progress payment is made. Once you provide us with the invoice for the final Progress Payment to be paid to your builder, we’ll conduct a final inspection to ensure that the property has been built to the building contract specifications.
While your loan is progressively drawn, we only charge interest on the amount drawn down. You’ll need to make Interest Only payments on this amount on the 15th of every month. Once the final Progress Payment is made, your loan product and repayment type will switch to what you chose at origination.
Your contracted loan term (typically 30 years) also officially commences at this time.
Prefab home construction loan follows a process like our standard construction loan, with your loan being progressively funded throughout stages of the build. To support customers looking to build a new prefab home up to $1.5 million, there are options now available to allow for funding while the house is being built off-site.
Get help from Ceba in the CommBank app or connect with a specialist who can message you back. You’ll need CommBank app notifications turned on so you know when you’ve received a reply.
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Subject to credit approval. Fees, charges, terms and condtions apply. As this advice has been prepared without considering your objectives, finanical situation or needs, you should consider its appropriateness to your circumstances before acting on the advice.
