Construction Loan

Build, renovate or develop with a great rate loan

Are you dreaming of building a new home , or do you want to renovate your current home?

Your dream can become a reality with our 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).

Here’s what you can do with a Construction Loan:

  • Build on land you already own or use it to buy a new block of land to build on within 12 months. Your loan amount will be based on the combination of land purchase and building cost.
  • Consolidate debt, while you plan and build that extension or renovate your home. With our competitive variable rate, you can even invest in updating your home before you sell without being locked into a fixed rate loan.
  • Borrow up to 90% of the property value during the construction period. Once construction is complete, you can choose from the range of AMP Bank home loans and roll-over your Construction Loan balance into your new home loan.
  • Make additional repayments without penalty at any time to pay off your loan sooner. Many of our other variable rate loans offer extended interest only repayment periods. See the comparison table

A Construction Loan may suit you if you’re:

  • 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).

Here’s what you get:

  • up to 90% of property value for your loan
  • $0 cost to make additional repayments anytime
  • 12 months to buy, build, extend or renovate
  • drawdown your loan funds only as you need them.
     
5.43% pa Construction Loan1
5.61% pa Comparison rate2

Apply now

Find out how

1300 534 325

Monday to Friday
9am – 5pm (AEST)

One of the biggest advantages of a Construction Loan is accessing funds during the building progress. You don’t need to drawdown the entire loan amount at once, saving you on interest repayments.

In most cases, a building or renovation project is completed and paid for in stages. Our Construction Loan gives you the flexibility of making progress payments, so you can draw the loan amount in instalments as the construction progresses.

Typically you may drawdown the loan in stages that cover:

  • buying the land (see our Land Loan)
  • laying the pad (foundation or bearers and joists)
  • roof building (along with framework)
  • lock up (walls, windows and doors)
  • final (drives, pathways and entries).

Remember, interest is only calculated on the amount you actually draw down. So if you have a loan for $250,000 and only need $50,000 at a time, your interest is charged only on each $50,000 you use.

At the end of the Construction Loan, you can select the AMP Bank home loan that suits you best, and your outstanding loan balance will roll-over into that account.

Effective 19 August 2016

Loan type

Interest rate(i)

Comparison rate(ii)

Construction Loan

5.43% pa

5.61% pa

An Establishment fee of $350 and a Settlement fee of $250 applies. A fee of $100 is applied at the time of each progress payment. An ongoing fee of $10 each month applies to this loan. Other fees and charges apply. Full details are available in our Home loan fees and charges guide.

(i) Rates are subject to change.
(ii) Comparison rate calculated for a secured loan on a loan amount of $150,000 for a 25-year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Effective 19 August 2016

Loan type

Interest rate(i)

Comparison rate(ii)

Construction Loan

5.72% pa

5.89% pa

An Establishment fee of $350 and a Settlement fee of $250 applies. A fee of $100 is applied at the time of each progress payment. An ongoing fee of $10 each month applies to this loan. Other fees and charges apply. Full details are available in our Home loan fees and charges guide.

(i) Rates are subject to change.
(ii) Comparison rate calculated for a secured loan on a loan amount of $150,000 for a 25-year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Options to structure your loan

With our Construction Loan, you'll have the option to make extra repayments or pay interest-only.

If you've received a lump sum such as a tax return, bonus or inheritance, you can make a substantial dent in your Construction Loan with an extra repayment before the outstanding balance rolls over into an AMP Bank home loan of your choice.

On the other hand, if you wanted to keep money as free as possible for the duration of your home build or renovation, you can make interest-only repayments. This applies only to the funds you have drawn down from the Construction Loan.

Thinking about getting a home loan?

Use our Loan repayment calculator to find out how much your repayments will be and how much you'll pay in interest. Then use our Extra repayments calculator to see how quickly you can pay off your loan.

  Classic Variable Rate Loan Construction Loan Land Loan
Fixed interest rate N/A N/A N/A
Variable interest rate Interest rates Interest rates Interest rates
Loan size $40,000 to $2,000,000 $40,000 to $850,000 $40,000 to $600,000
Upfront fees $350 Establishment fee and $250 Settlement fee $350 Establishment fee and $250 Settlement fee plus $100 per progress payment $350 Establishment fee and $250 Settlement fee
Ongoing fees $10 per month $10 per month $0
Repayments Monthly, fortnightly or weekly payments Monthly during construction Monthly, fortnightly or weekly payments.
Monthly only for interest only
Additional repayments Yes, anytime without penalty Yes, anytime without penalty Yes, anytime without penalty
Interest only period Up to five years Up to 12 months Up to five years
Redraw available Yes, access your additional payments when required Not available during construction period Yes, access your additional payments when required
Loan term Up to 30 years Maximum construction period 12 months Up to 30 years
Access Internet (BankNet), phone (BankPhone), BankAssist, access card, BPay Internet (BankNet) and phone (BankPhone) – information access Internet (BankNet), phone (BankPhone), BankAssist
Split loan facility Yes, up to 10 split loans allowed. Minimum split $10,000 No Yes, up to 10 split loans allowed. Minimum split $10,000
Can only be split with other Land Loans and or Construction Loan
100% offset Yes, with Offset Deposit Account(i) No No
  Apply now Apply now

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(i) A $5 monthly Account management fee is payable on the Offset Deposit Account when linked to a Basic Variable Rate Loan.

Still not sure? Find out more about all AMP Bank's home loans.

Rate subject to change. Fees and charges apply. Australian credit licence 234517.

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Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Bank Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.

The credit provider and product issuer is AMP Bank Limited, Australian Credit Licence 234517.

1 Rates are subject to change.
2 Comparison rate calculated for a secured loan on a loan amount of $150,000 for a 25-year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.