Construction Loan

A Construction Loan is ideal for people who are planning to build a property, purchase land with the intention to build within 12 months, or make an improvement to their current home.

This Construction Loan offers a competitive interest rate which converts into a variable home loan product, “Simplifier” free of charge once construction is complete.

Interest Rate

  • Please contact us for the best rates and product details: (02) 9265 1700
  • Variable only

Lending Range and LVR

  • 95% LVR, up to $1,100,000  per applicant
  • $600,000 for the purchase of land
  • $500,000 for construction if total facility is within the credit criteria
  • Up to 95% LVR (plus capitalised LMI premium) of “on completion” valuation where construction is to commence immediately (i.e. construction contract is already in place)
  •  Up to 80% of land valuation (or purchase price, whichever is the lower) where there is a commitment to commence construction of a dwelling within 12months of funding (i.e. construction contract is not in place) **.

Repayment Options

During Construction

After Construction

  • Once construction is finalised (last progress payment is made) the loan converts to Simplifier with P&I repayments

Term of Loan

  • Up to 30 years

Progress Payments

  • Maximum of five is permitted
  • Progress payments made upon approval by the borrower
  • Funds will not be advanced to builders for work not completed unless there is sufficient equity in the land to warrant the pre-advance
  • Borrower to put in their financial contribution before any progress payments are made
  • No minimum drawdown amount
  • Direct credit to builder’s pre-nominated account
  • If the request is approved by 2pm Sydney time, the funds will be available the next business day
  • If the request is approved after 2pm Sydney time, it will take an additional business day for the funds become available

Ongoing Fees and Charges

  • No monthly account keeping fees
  • No fees for making additional repayments (additional repayments can only be made after the loan reverts to Mortgage Simplifier)
  • No annual fees
  • No transaction fees

Fees and Charges to Set Up the Loan

  • Application fees  $0

Redraw conditions

  • Not available during construction period
  • Once your loan converts to Mortgage Simplifier, redraw is available

Discharge Fees

  • $250 plus legal cost

 Documents required

  • Copy of the Builder’s insurance policy
  •  An executed copy of the Fixed Price HIA/MBA Building Contract
  • Copy of Council approved plans and specifications Copy of the Builder’s licence
  • Valuation fee a $200 final valuation fee applies

All conditions are subject to change.

Please click here for personal assistance: info@nationwidemortgage.com.au