Construction loans

Whether you're building or renovating, the right financing can make the job easier and more affordable along the way.

How construction loans work

While every project is different, here’s how construction financing could work for you:

Circle 1

Project Planning

You work with your licensed builder to prepare a building contract, which includes the estimated costs, terms of construction and a progress payment schedule for payments to be made to your builder.

Circle 2

Finance Planning

Your Suncorp Bank home lending specialist will discuss a home loan for construction purposes with you. You will need to provide evidence of your income, expenses, assets and liabilities as you would with any home loan, together with additional documents that relate to your proposed build.

Circle 3


On settlement you’ll receive a welcome pack from our Progress Funding Team. This will outline any outstanding documentation we may require from you to get your progress payments underway. A process guide is also included to assist you with completing each drawdown from your loan.

Circle 4

First Progress Payment

When the builder is ready for the first payment, you’ll need to check that the work has been completed to your satisfaction before signing the invoice and sending it to your progress funding representative along with any other requested information. Once our requirements have been met, we will make the the first progress payment.

Circle 5

Repayments During Construction

During construction, you’ll only be charged interest on the amount actually drawn down, not the full approved amount.

Circle 6

Final Inspection

Once you are satisfied with the work completed, we’ll organise for a valuer to complete a final inspection. We may also request other documents, including a copy of the home/landlord insurance certificate and the occupancy certificate. Once all of our requirements have been satisfied, we will make the final progress payment.

Congratulations, you’re home!

Why choose Suncorp Bank for your home construction loan?

Great value

Choose from two of our most popular variable home loan products:

Our low rate, low fee home loan
Back to Basics Home Loan

Our low rate loan with 100% mortgage offset capability1
Variable Rate with Offset

We’ll pay your builder

With a construction loan, Suncorp Bank will draw down your loan and pay your builder in stages in accordance with the progress payments schedule in your building or construction contract (provided that our requirements have been met).

Option of interest-only payments2

As part of your application you can request to make interest-only payments when your construction is taking place (subject to credit approval). This can assist in reducing your repayments at a time when you may also be making rental payments. When your interest-only period ends, your repayment amount will increase.

Helpful tools & resources

How much could I borrow?

What could my repayments be?

All home loan calculators

Get some quick answers

100% obligation free advice

A Suncorp Bank home loan expert can work with you to help set you up for success.
Our experienced home lending team are happy to answer all your lending questions. They'll call with two hours (or next business day) to discuss your home lending needs.

Talk to a home loan expert

Or call 1300 711 973 Mon-Fri 8am-7pm and Sat-Sun 9am-5pm (AEST)

Things you should know:

1 A Mortgage Offset can be established by linking your Everyday Options Account to the loan account and having it in offset mode. While your Everyday Options Account is in offset mode you won’t earn interest on any sub-account balances except where you have fixed them in a flexiRate. flexiRates are deposit funds fixed for a set period so they will earn you interest and are not counted in your offset balance. A one-off Mortgage Offset Fee may be charged to your linked loan account, unless your loan is held in a Home Package Plus.

2 With Suncorp Bank home loans, a maximum period of five years interest-only repayments applies and is subject to you satisfying applicable bank criteria. Before choosing an interest-only repayment option, it’s important you understand the potential risks associated with this product feature. As the name suggests, interest-only repayments means you’ll pay the interest charges but you are not required to repay the principal during the interest-only period. Since repayments to reduce the principal are not being made during the interest-only period, the full loan amount will still be due at the end of the interest-only period. Your repayment amount will also increase when your interest-only period ends. You will pay more in interest than if you made principal and interest repayments from the first drawdown date

Banking products are issued by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No 229882 Australian Credit Licence 229882 (“Suncorp Bank”) to approved applicants only. Fees, charges, terms and conditions apply and are available on request. Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Information Document, Lending Fees and Charges and the Home Package Plus Terms and Conditions before making a decision regarding any Suncorp Bank products. We do not accept any legal responsibility for any loss incurred as a result of reliance upon this information – please make your own enquiries.