Business construction loans
How will business construction loans work at ANZ?
When your construction loan moves to ANZ, some aspects of how it is managed during construction will change.
You’ll have the remaining loan term or a 24-month period from when your loan moves to ANZ, whichever is earlier, to complete construction and fully draw down your loan.
During construction, if you’re currently making Principal and Interest repayments, once your loan moves to ANZ, your repayments will switch to Interest Only until your final drawdown is complete.
If you’re currently making Interest Only repayments during your progressive drawdown, any Interest Only period that you have remaining at the time of the move to ANZ will begin after the final drawdown. You’ll remain on Interest Only until the Interest Only period expires, then you’ll switch to Principal and Interest (with higher repayments).
Not all the information on this page will be relevant to you. Please refer to the email or letter that Suncorp Bank has sent you to understand how some of the key changes will impact your home loan.
If you haven’t received either email or letter, please contact us.
What changes during construction?
Once your construction loan moves to ANZ, redraw won’t be available during the construction drawdown period.
Additional repayments made during construction cannot be accessed via redraw.
Additional repayments made after construction is complete and the loan is fully drawn will be available via redraw (if eligible).
Before your loan moves, check if you have available advance funds
If you want to access additional repayments you’ve already made, you’ll need to submit a Cashback withdrawal request to withdraw some or all of your advance funds (Cashback/redraw balance if available) before the move.
If you don’t withdraw your advance funds (Cashback/redraw balance if available) before your loan moves to ANZ, at the time of the move, those funds will be applied to your loan. You won’t be able to withdraw your advance funds after your loan moves to ANZ.
Principal and Interest
Repayments that cover the interest charged on your loan and also reduce the amount you owe.
I’m currently making Principal and Interest repayments
Once your loan moves to ANZ, your repayments will switch to Interest Only until your final drawdown is complete.
Your Interest Only repayment amount will be calculated daily on your outstanding loan balance and charged monthly. As the owing balance can vary due to drawdowns to pay for your construction stages, and the number of days in each month can vary, your repayment amount may also vary.
Unlike Principal and Interest repayments, Interest Only repayments don’t reduce your Principal, so your loan will be paid down more slowly. Interest owed over the life of your loan, however, will be reduced if you choose to make additional repayments during the construction period. You can make additional repayments at any time without incurring fees or charges.
After your final drawdown, your loan will switch to Principal and Interest repayments. These repayments will be higher than your Interest Only repayments.
Interest Only
Unlike Principal and Interest repayments, Interest Only repayments don’t pay down your loan balance, so you’ll owe the same amount until you start making Principal and Interest repayments.
I’m currently making Interest Only repayments during the progressive drawdown
Any Interest Only period that you have remaining at the time of the move to ANZ will begin after the final drawdown. You’ll remain on Interest Only until the Interest Only period expires, then you’ll switch to Principal and Interest (with higher repayments).
Your loan term may be extended to allow for the remainder of your Interest Only period.
What happens after construction is finished?
If you’re scheduled to move to Principal and Interest payments, this will occur immediately after your final drawdown or the expiry of your Interest Only period (whichever is later).
These repayments may be significantly higher than Principal and Interest repayments that you’re currently making. You may be able to manage the increase by making additional repayments applied to the loan during the Interest Only period.
What does this mean for me?
- When your loan moves to ANZ, you’ll have the remaining loan term or a 24-month period, whichever is earlier, to draw down your loan.
- If you’re scheduled to move to Principal and Interest repayments, this will occur immediately after your final drawdown or the expiry of your Interest Only period (whichever is later).
- Your repayments may be significantly higher than the Principal and Interest repayments that you’re currently making. You may be able to manage the increase by making additional repayments applied to the loan during the Interest Only period.
- Depending on your remaining loan term, your loan term may be extended after you’ve completed all drawdowns. The extension period (between 3-7 months) depends on your payment frequency and the remaining term of your loan.
- Additional repayments made during construction cannot be accessed via redraw.
- Additional repayments made after construction is complete and the loan is fully drawn will be available via redraw (if eligible).
- If you don’t withdraw your advance funds (Cashback/redraw balance if available) before your loan moves to ANZ, at the time of the move those funds will be applied to your loan. You won’t be able to withdraw your advance funds after your loan moves to ANZ.
- Your remaining loan term will be reduced by the unused remainder of the 24-month limit period after you’ve made your final draw. ANZ will notify you of your loan term remaining once you’ve completed your final draw.
What do I need to do before the move?
If construction is complete, book an appointment so we can ensure that your loan is correctly set up before the move to ANZ.
If you have a Relationship Manager, contact them or book an appointment.
If you’re still building and have made a drawdown, you must book an appointment to set up a direct debit (if you don’t currently have one) for your Interest Only repayments. You can complete any remaining drawdowns before or after your loan moves to ANZ (subject to the remaining loan term or a 24-month period from when your loan moves to ANZ, whichever is earlier).
If you have a Relationship Manager, contact them or book an appointment.
If you want to access any additional repayments you’ve already made with Suncorp Bank, submit a Cashback withdrawal request via Suncorp Bank Internet Banking or the online form before the move to ANZ. If approved, you can transfer your available Cashback/redraw into your preferred account before your loan moves.
Frequently Asked Questions
When your business construction loan moves to ANZ, you'll have the remaining loan term, or 24 months from the move (whichever is earlier), to complete construction and fully draw down your loan.
During this period, your repayments will be Interest Only. If you’re currently making Principal and Interest repayments this means you may have less time remaining to repay the Principal once the Interest Only period ends.
As a result, your Principal and Interest minimum loan repayments may be higher after construction is complete, as the remaining loan balance will need to be repaid over a shorter period.
For example, if you have 36 months remaining on your loan when it moves to ANZ and spend 24 months making Interest Only repayments, you’ll have 12 months remaining to repay the Principal and Interest.
You may be able to manage the increase by making additional repayments during the Interest Only period. Additional repayments made during construction cannot be accessed via redraw.
Please note, this applies to business construction loans only.
Reason 1 – To allow enough time to complete construction
When your loan moves to ANZ, you’ll have either your remaining loan term or up to 24 months to complete construction, whichever is earlier.
If your remaining loan term isn’t long enough, we may extend your loan term and maturity date. The extension will depend on how often you make repayments.
Please note: If your remaining loan term is equal to or longer than the period shown above, your loan term and maturity date won’t change.
Reason 2 – To keep your remaining interest-only period
If you have an interest-only period remaining when your loan moves to ANZ, we may need to extend your loan term and maturity date so you can keep that full interest-only period after construction is complete.
Please note, this applies to business construction loans only.
Not during construction, no.
Additional repayments you make during the construction drawdown period can't be accessed through redraw.
Additional repayments made after construction is complete and the loan is fully drawn will be available via redraw, depending on your loan terms.
For now, nothing changes. Before your loan moves to ANZ, you can still access any available Cashback/redraw funds on eligible loans.
After the move, what you can access will depend on your loan type and features. You’ll soon be sent an email or letter from us outlining some key changes to your loan that will apply after the move.
Suncorp Bank is still your loan provider until your existing loan moves to ANZ, and in the meantime we’ll continue to help you manage your existing loan.
If you're thinking about refinancing, switching products or making any other change, book an appointment, contact us or speak with your broker or Relationship Manager about your options before the move. We’ll stop processing some service requests closer to the move date.
We're no longer accepting new loan applications. If you already have one in progress get in touch with us or your broker so we can talk through what this means for you.
Once your loan moves, you’ll bank with ANZ and can contact them for any changes to your loan.
The timing depends on the change you’d like to make, so it’s a good idea to review the information we send you and act as early as you can. We'll stop processing some service requests closer to the move date.
If you’d like to talk through your options or need support, book an appointment with a loan specialist, or if you have a Relationship Manager, please contact them directly.
Have another question about the move to ANZ?
Chat to our virtual assistant, Scout. Scout is here to help or can connect you to someone who can.
Things you should know
Any advice as well as any information relating to the move from Suncorp Bank to ANZ is of a general nature and is being provided without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information in this website. It does not constitute legal or tax advice, and you should seek expert advice in this regard.
Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) (ANZ) acquired Norfina Limited (ABN 66 010 831 722) (Suncorp Bank) on 31 July 2024. As Suncorp Bank is now part of the ANZ Group, it may be necessary to vary the terms of your Suncorp Bank product to match the terms of a similar ANZ product. This means you may end up with a product that has different terms and features to those you initially applied for. In any event, Suncorp Bank will provide you with a more detailed notice of these changes if the variation applies to your products. A full list of changes relating to the current product offerings can be found at suncorpbank.com.au/variation. Please contact us if you have any questions or if there is a feature that is important to you.
Principal and Interest
Repayments that cover the interest charged on your loan and also reduce the amount you owe.
Interest Only
Unlike Principal and Interest repayments, Interest Only repayments don’t pay down your loan balance, so you’ll owe the same amount until you start making Principal and Interest repayments.
