Construction Loan

Build a brand new home or complete major renovations as you stagger payments to your builder.

Rates from
6.49
%
variable rate p.a.
6.61
%
comparison rate p.a.*
Owner occupier P&I with LVR ≤60%. Terms & conditions apply*
Rates from
6.89
%
variable rate p.a.
7.01
%
comparison rate p.a.*
Investor P&I with LVR ≤60%. Terms & conditions apply*
Apply now
woman on a ladder doing construction
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4.8 based on 53 reviews
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Our Construction Loan features

Progressive payments

Construction funds are progressively drawn down at each stage of the construction once pre-determined milestones have been met. There are six milestones: deposit to builder, base/slab, frame, lock up, fitout and completion.

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Interest only repayments

You make interest only repayments on your construction loan during the construction period. Interest is charged only on the funds that you have drawn.

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Up to 90% LVR

We can help you purchase when you don’t have a 20% deposit. The Yard Home Loan can have an LVR of up to 90%. Lenders Mortgage Insurance (LMI) is needed if your LVR is greater than 80%.

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Unlimited additional repayments

You can make free, unlimited additional repayments on our variable home loan without being penalised. This mean that you can pay off your loan faster than the agreed term and save on interest.

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What our Construction Loan offers

The Yard construction loan is engineered for building. It gets used (drawn) only when your builder needs to be paid, meaning you can save on interest payments.

Rates from
6.49
%
variable rate p.a.
6.61
%
comparison rate p.a.**
Owner occupier P&I with LVR ≤60%
Rates from
6.89
%
variable rate p.a.
7.01
%
comparison rate p.a.**
Investor P&I with LVR ≤60%
Interest rate type
Variable
‍
Loan size
$150,000 min
$5,000,000 max
Loan term
12 months
‍
Max LVR
90% for home owners
90% for investors
Repayment frequency
Weekly
Fortnightly
Monthly
Repayment types
Interest only

‍

What Yard customers say about our Construction Finance...

Are you ready to make a move?

Frequently asked questions about Yard's Construction Loan

What is a construction home loan and how does it work?

A construction loan works a little differently to a standard home loan, as you do not receive the funds in one lump sum. With a construction loan, we first provide you with an approval for the cost associated with the build of your property. We then release the funds to your builder in progressive payments as you reach certain build milestones. This allows you to save on interest during the construction phase. There are six milestones: deposit, slab, frame, lock-up, fit-out and completion. Progress payments are made at each of these milestones and paid directly to your builder. Then, at the end of your project, it automatically converts into a Yard Home Loan. Simple!

For more information, read our Construction Loans Guide or talk to one of our experts.

How long do I have to start and then complete the construction?

The construction of your home must commence within 6 months of loan settlement. Construction must be completed within 12 months from settlement.

What documentation do I require to apply for a Yard Construction Loan?

We would need to make an assessment of your personal financial situation. We would also require:
•  Copy of stamped council approved plans and specifications
•  Executed fixed priced Building Contract including milestone-based schedule of work
•  Copy of Builder’s Indemnity & Public Liability Insurance
•  Copy of Builder’s Construction Insurance
•  Quotes of work not carried out by the builder (minor works such as tiling)

When are valuations required?

There are three valuations within the construction process. We require a valuation before the loan is approved and two progress inspections to authorise payment at the frame and completion stages.

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