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Construction loans

If you're looking to build a home, renovate or knock-down and rebuild, you may want to consider a construction loan which gives you the flexibility to draw down funds progressively to pay your builder at key stages of the build.

Chat with us about how to finance your build or renovation

Benefits of a construction loan

Draw down as you build

A construction loan enables you to draw down on your loan progressively (called progress payments) to pay your builder at key stages of your build, rather than drawing down the whole loan amount upfront. You only pay interest on the funds you've used.

Pay interest only while you build

Make interest only repayments during the building phase. You won't need to make principal and interest repayments until construction has finished and you have fully drawn down your loan.

Save on interest with offset

With our ANZ Standard Variable rate construction loan you could save on interest by linking it to an offset account. The money you have in your offset account will offset the amount you owe on your loan, and you'll only be charged interest on the difference.

The information on this page does not apply to ANZ Plus products

How our construction loans work

Decide if a construction loan is right for you

You can use a construction loan for a new build, a knock-down and rebuild or a major structural renovation (such as moving walls, adding a room or changing the roofline). If you're looking to buy a new block of land, check out our land loans.

Apply for pre-approvaldisclaimer

You may be able to get pre-approvaldisclaimer for your construction loan before choosing your builder or signing a building contract, so you know the funds you'll have available and can set a budget to stick to.

Draw down within 6 months

Your first request to draw down on your loan to pay your builder will need to be made within six months of receiving your Letter of Offer.

Complete your build within 24 months

From the date of your first drawdown, you'll have 24 months to complete the build. It's important to keep to these timelines. See frequently asked questions for more details.

Your step-by-step guide to construction loans

Check out ANZ's Guide to construction loans for the key things you need to know about how construction loans work, how to pay your builder and how to make repayments on your loan.

Download guide (PDF, 2MB)

Construction loan interest rates

Basic variable


Principal & interest

Comparison ratedisclaimer

Interest rate with special offer discountdisclaimer when borrowing 70% or less of the property value.disclaimer

Get a competitive interest rate and basic features (no offset).

More on ANZ Simplicity PLUS

Standard variable with optional offsetdisclaimer


Principal & interest

Comparison ratedisclaimer

Discounted standard variable rate when borrowing 80% or less of the property value.disclaimer

Can I go lower?

Talk to us to find out if a further discount could apply to your standard variable rate, depending on your situation.

ANZ Standard Variable

Fees and features

How much can I borrow?

Your details

Your earnings


Your expenses

$ Required

We estimate you could borrow:


What's next?

In under 5 minutes, you can get your application started for pre-approvaldisclaimer, a new home loan, refinancing, or topping up your existing home loan.

Tell us a bit about yourself and the loan you'd like, then we'll call you back within 24-48 hours to help keep your application moving.

Construction loans fees and other important numbers

  • $0 Loan approval fee
  • $0 Loan administration charge
  • $0 Renegotiation fee
  • $0 Valuation administration fee
  • $0 Progress payment fee
  • $0 Guarantee administration fee

These fees may apply, depending on how you choose to manage your ANZ Standard Variable rate loan:




ANZ One offset account

$10 per month




Late payment fee


Settlement fee


Production fee


Lodgement fee


Search fee


Government charges 

As per individual state or territory fees


Loan security fees including Lodgement Fee, Production Fee, Settlement Fee and Search Fee still apply however will not be charged on establishment of a loan. Government fees, including government search fees, may still apply.

For further details refer to ANZ Personal Banking General Fees and Charges (PDF 155kb).

Facts and figures


Facts and figures

Minimum new loan amount

ANZ Standard Variable- $20,000

ANZ Simplicity PLUS - $50,000

Maximum loan amount

Subject to ANZ's credit assessment criteria

For further information, see maximum loan as percentage of property value on compare ANZ home loans page.

Maximum loan term

30 years

Maximum interest only term

ANZ Standard Variable:

  • Owner occupied: 5 years
  • Investment: 10 years

ANZ Simplicity PLUS:

  • Investment: 10 years

Progressive loan draw down

Up to 24 months

Lenders' mortgage insurancedisclaimer

Usually required if LVR is more than 80%

Considering a knock-down-rebuild?

If you love your location but your home just isn't cutting it like it used to, you may want to consider knocking down your home and building a new one. A construction loan gives you the flexibility to pay in stages as you build so you can focus on making your home design choices. 

Talk to us today

Connect with our home loan specialists or apply

Need to speak to a specialist?

Provide us with your details and one of our home loan specialists will get in touch. They can discuss issues including:

  • Applying for a home loan
  • Managing your existing loan
  • Refinancing your home loan
  • Interest rate enquiry

As well as any other home loan queries you may have.

clock icon

Call back time is 1-3 business days.

Request a call back


Quick start application

Begin your home loan application journey by providing details about:

  • You
  • Your financial situation
  • The loan you're applying for

One of our home loan specialists will then be in touch to progress with your application.

clock icon

Call back time is 1-3 business days.

Apply online


Call us

Monday - Friday 8am to 8pm (Sydney/Melbourne time)

1800 100 641  


Other ways to get in touch

Meet with a mobile lenderdisclaimer

Book a branch appointment

Book a First Home Buyer Coach

You can also chat to an ANZ accredited broker for help with your home buying, investing or refinancing needs.

Your construction loan questions answered

Your Fixed Price Building Contract should detail all the work your builder promises to complete as part of the project, as well as a progress payment schedule which outlines the costs and amounts payable at each stage of the project. Sometimes the Fixed Price Building Contract will include an addendum outlining the Specifications and Inclusions. Otherwise, your builder will supply these to you separately.


If you’re planning to use your own savings to pay for part of your project, you’ll need to pay this amount directly to your builder before you can start using your construction loan. If you’re wanting to use equity you have in another property to finance your project, speak to a lender to find out your options.


When the final payment has been made to your builder, your home loan moves out of the construction phase. You then have some choices to make to ensure your home loan is set up in the best way for you. Your options include:

  1. do nothing and your home loan will revert to principal and interest repayments on the variable rate for your loan product (i.e. the basic variable or standard variable home loan you signed up for when you applied).
  2. contact us to extend your interest only repayment period to up to 5 years for an owner-occupied home or 10 years for a residential investment loan
  3. contact us to switch your loan to an alternative variable or fixed rate
  4. contact us to split your loan for a mix of variable and fixed

See current rates or use our repayment calculator for more information. 

This is also a good time to check that your preferred repayment frequency and recurring payments are set and to establish an offset account if needed. 

If your invoice creates a shortfall of funds for the remainder of the build that is less than $5000, ANZ may cover this during construction, however you’ll need to pay it back at the end of construction. If it’s more than $5,000 you’ll need to use your savings to cover the difference.

If you’re experiencing long delays while building and are concerned it will take longer than 24 months from first draw down to complete construction, talk to your lender to discuss the terms set out in your Letter of Offer and your options.

If your land loan is already with ANZ, this means we already hold a mortgage on the property. Depending on whether you satisfy the relevant eligibility criteria, possible options include renewing your existing loan and adding the funds for the construction, or you can choose to keep the two loans separate. If your land loan isn’t with ANZ, we’ll need to take a new mortgage over the property. You can also talk to your lender about refinancing your land loan.


If you have money in an everyday banking account, you may choose to move it into an ANZ One offset account. You can link it to your ANZ Standard Variable loan or one-year ANZ Fixed loan to help you save on interest charges. The money you have in ANZ One will offset the amount you owe on your home loan, and you’ll only be charged interest on the difference.

A $10 servicing fee applies per month per offset account.

Find out more about offset accounts.

If you choose interest only, the minimum payment amount on your loan will be lower during the interest only period because you are not required to repay any of the loan principal. You will have to repay the principal down the track and so you may end up paying more over the life of your loan. There may be additional restrictions on the amount you can borrow or loan type you can select if you choose to pay interest only.

Choosing to repay principal and interest means that, with each repayment, you're paying off interest charges as well as some of the loan principal.

Learn more about payment types.

Interest is calculated based on the unpaid daily balance of your loan. For example, if you had a loan balance of $400,000 and your interest rate was 3% p.a., your interest charge would be $400,000 x 3% divided by 365 days = $32.87 for that day. For most ANZ home loans, interest is usually calculated daily and charged monthly. 

For details refer to the ANZ Consumer Lending Terms and Conditions (PDF) and your letter of offer.

A comparison rate is designed to help you work out the total cost of a home loan by building the known costs like up-front and ongoing fees into that rate. It doesn’t include things like government charges, redraw fees or fee waivers. 

You can use comparison rates to help you compare the cost of different home loans with similar features. When deciding which home loan is right for you, it’s important to think about what features each home loan offers, and how much these matter to you. Keep in mind that you may not necessarily pay the comparison rate that is advertised for your loan type.  This is because, for example, you may not pay all the fees and charges which the comparison rate includes.


You might also be interested in


Build or buy: Weighing up the pros and cons

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Here are some pros and cons to consider when deciding whether to build your own home or buy an existing home.



Thinking about building? Understand your options

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Tossing up between a house and land package and becoming an owner-builder? Here are some things to consider.



Applying for a home loan when buying land

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If you’re planning on buying land in a new estate, you probably want to feel certain that you can borrow the balance when it’s time to settle. 


The information on this page does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you and read the relevant terms and conditionsProduct Disclosure Statement and the ANZ Financial Services Guide (PDF) before acquiring any product. 

Applications for credit subject to approval. Terms and conditions available on application. Fees and charges apply. Australian credit licence number 234527.

Borrowing power calculator

Applications for credit are subject to ANZ credit approval criteria. Terms and conditions, and fees and charges apply. Australian credit licence number 234527.

The estimate is based on the accuracy of the information provided. It is also based on a loan term of 30 years, payment type principal and interest and either an ANZ Simplicity PLUS rate for home loans or an ANZ Simplicity PLUS rate for residential investment property loan depending on the type of property you have selected. Rate includes a special offer discount when borrowing 80% or less of the property value (which is subject to change). Eligibility criteria apply to special offer discounts for ANZ Simplicity PLUS home loans, including $50,000 or more in new or additional lending. Offer can be withdrawn or changed anytime. The estimate might be different if payment type is interest only or if a different interest rate discount applies. It does not constitute an offer of credit. To apply for an ANZ Home Loan you must complete an application. All applications for credit are subject to ANZ credit approval criteria. ANZ does not store the information you provided to generate this document.

The calculation of estimated maximum home loan borrowing power excludes Lenders Mortgage Insurance. The value of the security property is also considered in any credit assessment criteria.

Minimum loan amounts apply to different loan types. For more information, visit or contact us.

ANZ may provide pre-approval (also known as approval in principle or conditional approval) to eligible customers who apply for an ANZ home loan and complete an application form and satisfy any other applicable requirements. Pre-approval is an approval for a loan subject to conditions being met, including that security is satisfactory to ANZ. Australian Credit Licence Number 234527.


The rate shown is the Simplicity PLUS Home Loan index less the applicable special offer discount for loans with a Loan to Value Ratio of 60% or less. Rates are subject to change. Eligibility criteria apply to special offer discounts, including $50,000 or more in new or additional ANZ lending. Offers can be withdrawn or changed anytime.


Comparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly payments, including any applicable interest rate discounts. These rates are for secured loans only.

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.

For interest only variable loans, the comparison rates are based on an initial 5 year interest only term. For fixed rate interest only loans, the comparison rates are based on an initial interest only period equal in term to the fixed period.


Property value is ANZ's valuation of the security property and may be different to the price you pay for a property.


A $10 servicing fee applies per month per ANZ One offset account. Please refer to ANZ Personal Banking Account Fees and Charges (PDF) for fees and charges that apply.


The interest rate shown includes an interest rate discount from the index rate. For ANZ Standard Variable, this discount is  for loans with a Loan to Value Ratio (LVR) of greater than 80% and  for loans with a LVR 80% or less. For ANZ Fixed, this discount is  for loans with a LVR greater than 80% and  for loans with a LVR 80% or less. 


The rate shown is the Simplicity PLUS Residential Investment Property Loan index less the applicable special offer discount. Rates are subject to change. Eligibility criteria apply to special offer discounts, including $50,000 or more in new or additional ANZ lending. Offers can be withdrawn or changed anytime. 


Rates shown apply during the interest only period of your loan. Choose from 1-5 year interest only terms for owner occupied on an ANZ Standard Variable (Land Loan up to three years) and ANZ Fixed (Land Loan up to three years) and choose from 1-5, 7 and 10 year interest only terms for residential investments on an ANZ Standard Variable (Land Loan up to one year), ANZ Fixed (Land Loan up to one year) and ANZ Simplicity PLUS. If you choose to make interest only payments on ANZ Fixed, your fixed period and interest only period will be the same. After the interest only period, your rate will switch to the applicable variable rate for a principal and interest loan. At the end of the interest only period, minimum repayment amounts may increase to cover principal and interest. Interest only loans are not for everyone and you should consider if this is the right strategy for you.


Lenders Mortgage Insurance (LMI) is paid by the borrower and protects ANZ in the event that the borrower defaults and a shortfall arises following the sale of the security property. ANZ usually requires LMI where the Loan to Value Ratio (LVR) is above 80% (depending on the type of property). For some property types, LMI might be required when LVR is less than 80%.


ANZ Mobile Lenders operate as an independently operated ANZ Mortgage Solutions franchise of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number 234527.