Lower interest rates
Market leading Principal & Interest and Interest Only rates for owner-occupiers and investors.
Build a brand new home or complete major renovations as you stagger payments to your builder.
Construction funds are progressively drawn down at each stage of the construction once pre-determined milestones have been met. Typical milestones include: deposit to builder, base/slab, frame, lock up, fitout and completion.
You make interest only repayments on your construction loan during the construction period. Interest is charged only on the funds that you have drawn.
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%.
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.
Own your property sooner with our low rate, fully-featured
home loans
Market leading Principal & Interest and Interest Only rates for owner-occupiers and investors.
Our loans have all the bells and whistles - online access with redraw, early repayment and offset functionality.
At Yard you get your own personal consultant who works with you throughout your construction or renovation journey.
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.
A construction loan works 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 typically six construction 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. For more information, read our Construction Loans Guide or talk to one of our experts.
The construction of your home must commence within 6 months of loan settlement. Construction is expected to be completed within 12 months from settlement.
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. Quotes for work not carried out by the builder (minor works, e.g. tiling)
• Copy of Builder’s Indemnity & Public Liability Insurance
• Copy of Builder’s Construction Insurance
A valuation is required at each milestone stage of the construction process before a payment to the builder can be authorised.
Potential benefits
Potential risks
Yes, you can use the equity in your home to fund your construction loan, provided you have enough to satisfy the lender’s requirements. The equity in your current home could help fund the deposit requirements for the construction loan. If you own land then there is a distinct product, land equity construction loans, to fund your building or large renovation project. Speak with a Yard Consultant to discuss what options may be available to you.
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