Construction & Land Loans
If you're looking to build your dream new home, find out how a Greater Bank Construction Loan can help make it a reality.
Construction loans explained
Basically, a construction loan helps you pay for your build progressively, as and when you need funds. Once the build is complete, your loan then reverts to a regular home loan.
Say the cost of building your new home is going to be $600,000, and you’re currently paying an existing mortgage on your old house of $350,000. The last thing you want is to go into debt for $950,000.
This is where a construction loan helps – you are able to arrange finance for the cost of your new build, but the full amount isn’t drawn down all at once from the get go. As your build progresses, and you’re able to sign off on a certain phase of it, you can draw down only the money you need.
So, after 3 months of your build, you may be ready to draw down only $50,000 of the total build cost of $600,000. A construction loan lets you do this.
Draw down with security
As each of the phases of your build is completed, you draw down only the funds you need to pay your builder & suppliers.
What this means is that with a construction loan, you only complete a drawdown and start paying interest on the drawn down amount once you’re completely satisfied that all work that was agreed upon has been completed. To complete a drawdown, we’ll ask you for things like builder’s invoices and a progress claim certificate.
Also good to know
Inspections & Valuations
Before you start building, we’ll need what’s called an ‘as complete’ valuation, as well as further inspections and valuations throughout your building project.
Cost overruns
No two projects are the same, and none are perfect. If at any stage in the build your costs exceed the amount we’ve agreed upon, get in touch ASAP. If we’re not able to help out, these are costs you may have to absorb.
Insurance
Before you can make any draw-downs, you’ll need to have all your insurance in place, like Builder’s All Risk insurance, Domestic/Home Warranty Insurance and Public Liability Insurance.
Final payment
Once your build is complete, we’ll try to make things as smooth as possible so you can kick start the celebrations.
For new builds, we may require a copy of the occupancy certificate to release your final loan drawdown. Once that’s done, and your new repayments take effect, it’s party time!
Compare Home Loans
Compare 5 products
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Great Rate Home Loan
Perfect if you’re after great value and no ongoing fees.
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Ultimate Home Loan
Our ultimate in loans. Offering the flexibility of fixed or variable rate, or a mixture of both.
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Line of Credit
Our Line of Credit helps you make the most of the equity in your home.
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Ultimate Investment Home Loan
Combining great value with a range of features designed to make investing easier.
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Great Rate Investment Home Loan
With low-interest rates and no monthly or annual fees, we've made investing simple.
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Interest rate
5.94
%#
p.a.
Comparison rate
5.95
%^
p.a.
~Discount variable rate, owner occupied, principal and interest
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Interest Rate
6.13
%#
p.a.
Comparison rate
6.50
%^
p.a.
~Discount variable rate, owner occupied, principal and interest
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Interest rate
8.80
%
p.a.
Line of Credit home loan base rate
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Interest rate
6.19
%#
p.a.
Comparison rate
6.56
%^
p.a.
~Discount variable rate, principal and interest
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Interest rate
6.09
%#
p.a.
Comparison rate
6.10
%^
p.a.
~Discount variable rate, principal and interest
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*Conditions, fees and charges apply to all loans. Subject to meeting Greater Bank's lending criteria.
Greater Bank, part of Newcastle Greater Mutual Group Ltd ACN 087 651 992 Australian Financial Services Licence/Australian credit licence 238273
++ $2,000 cashback for loans ≥$250,000 with LVR of less than or equal to 80%, or $3,000 cashback for loans ≥$500,000 with LVR of less than or equal to 80%,. Applications must be submitted by 31/05/2024 and funded by 31/08/2024. Only one (1) Cashback Payment per eligible loan, and for first eligible loan only. Not available in conjunction with any other promotional payment. Offer may be varied or withdrawn at any time. See the full Cashback Offer Terms and Conditions. Terms, conditions, fees, charges and credit criteria apply.
~At the end of the fixed rate period customers can chose to re-fix their loan for another fixed rate period or let the loan revert to the applicable variable interest rate based on the loan and repayment type.
^Comparison rate is based on $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
#Discounted rates include a discount on Home Loans of $150,000 or over and for owner occupied Home Loans with an LVR 80% or below and for investment Home Loan with an LVR 80% or below and apply to new borrowings only. Discounted rate not available for Line of Credit facilities.
+Additional costs may apply if your loan has a fixed rate.
All new interest-only home loans, attract a 0.10% p.a. margin above the applicable Principal and Interest base rate. All new Line of Credit home loans, attract a 0.10% p.a. margin above the applicable Line of Credit base rate. The all-up interest rate which includes any margins, will be set out in your credit contract. View our Terms and Conditions.
FASTRefi® is a registered trademark of First American Title Insurance Company of Australia Pty Limited ABN 64 075 279 908.
Rate City Gold Award 2024, see http://ratecity.com.au/home-loans/awards for more information