Construction Loan

The MyRate Construction Loan offers one of Australia's lowest interest rates for construction loans. Finance the building of your dream home or an investment property. Borrow up to 80% of the land value and up to 90% of completion value (land plus building costs). There are no progress inspections for payments.

This loan may be suitable if...

• You own or want to buy land and build a house on it
• You are making major renovations to your existing home
• You are an investor wanting to finance a residential construction project
  
  NB. MyRate's construction loan is not available to owner builders.
  For renovations, a builder construction contract is required.

Using the Construction Loan

• During the construction phase, make interest-only payments (letting you focus cashflow on construction)
• When construction is complete, there is a final valuation (costing $295) on the whole property
• After final valuation, make principal and interest payments (at our low variable rate) building up your equity.

After construction the product reverts to the Advantage Loan. At the time of converting, your interest rate will be the same as the current interest rate for customers that obtained an Advantage Loan at the time of your initial construction loan settlement. See the Advantage Loan product page for information on using the Advantage Loan.

MyRate Construction Loan features
Type of loan	Standard Variable
Low interest rate	6.15% p.a.
Application fees*	$0
Valuation fees*	$0 initial valuation, $295 final valuation.
Legal fees*	$0
Settlement fees*	$0
Ongoing/Monthly fees*	$0
Redraw fees*	$0
Deferred establishment fees	$0
Full fee schedule	We have done our best to minimise as many fees as possible. View our full fee schedule and descriptions.
Minimum loan	$100k
Maximum loan	$1M (more with special approval)
Max LVR	90% Land & construction. Construction must be within 12 months
Splits/Combination	(after construction period)
Interest Only	Up to 1 year (monthly repayments only during construction period)
Repayment frequency	Monthly only during construction period
Unlimited redraws*	(after construction period)
Additional repayments*
Term	10 to 30 years
Direct debit
Salary crediting	n/a
Deposit Book*
Cheque/ATM/Credit Card/Eftpos	Learn more
Internet/Phone Banking
BPay	Learn more
Statements	Half Yearly
Product Info Sheet	Download PDF

Specific conditions for different scenarios

You are ready to buy the land, but you are NOT READY TO BUILD yet:

• You can finance up to 80% of the lesser of the purchase price or valuation of the land.
• The security must be located in an acceptable location.
• The security must not be greater than 2 hectares in size and must be zoned for residential or rural residential use.
• You can only build a single residential dwelling i.e. no development finance for multiple dwellings including duplex, units or townhouses etc.
• The purchase/construction can be for owner occupation or investment.
• The loan agreement must be conditional for construction requirements and construction must commence within 12 months of the disclosure date (approval).

You already have the land, or you are buying it now, and you ARE READY TO BUILD:

• You can finance up to 90% of the cost to construct plus the lesser of the purchase price or valuation, ONLY if you have LMI approval, otherwise it's 80% LVR maximum.
• The security must be located in an acceptable location.
• The security must not be greater than 2 hectares in size and must be zoned for residential or rural residential use.
• You can only build a single residential dwelling i.e. no development finance for multiple dwellings including duplex, units or townhouses etc.
• The purchase/construction can be for owner occupation or investment.
• The loan agreement must be conditional for construction requirements.