Construction loans
How will 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 24 months from when your loan moves to ANZ to complete construction and fully draw down your loan.
During construction, if you are 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 are currently making Interest Only repayments, you’ll continue to make interest only repayments until the final draw down or until your interest only period expires.
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.
Principal and Interest
Repayments that cover the interest charged on your loan and also reduce the amount you owe.
Before your loan moves, check if you have available advance funds
If you have available advance funds in your Cashback/redraw and you want to access them, you’ll need to submit a cashback withdrawal request to withdraw some or all of your funds in your Cashback/redraw before the move. Any funds you don’t withdraw will be applied to your loan balance when your loan moves, and you won’t be able to access them afterwards. Any funds you don’t withdraw will be applied to your loan balance when your loan moves, and you won’t be able to access them afterwards.
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 rate during the Interest Only period will be the same as the Principal and Interest rate you’re paying at the time of the move to ANZ.
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 any 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
If your Interest Only period expires before your final drawdown, you’ll continue making Interest Only repayments until the final drawdown. After your final drawdown, your repayments will switch to Principal and Interest, which will increase your minimum loan repayment amount.
If your Interest Only period expires after your final drawdown
You’ll remain on Interest Only repayments until it expires. After your Interest Only period ends, your repayments will switch to Principal and Interest, which will increase your minimum loan repayment amount.
What happens after construction is finished?
After your final drawdown, your loan will switch to Principal and Interest repayments, unless you have an Interest Only period that continues after your final drawdown.
When your loan switches to Principal and Interest repayments, your minimum loan repayment amount will increase.
What does this mean for me?
- When your loan moves to ANZ, you’ll have up to 24-months to complete all drawdowns.
- Your loan will move to Principal and Interest after your final drawdown, or after your Interest Only period ends, if later.
- Your minimum loan repayments at ANZ may be higher than the Principal and Interest repayments that you’re currently making at Suncorp Bank. Making additional repayments during the Interest Only period will reduce your loan balance and may help lower your Principal and Interest repayments when they begin; however, your repayments may still be higher than what you’re paying now.
- Any additional repayments will be applied directly to your loan balance and won’t be available for redraw.
- Additional repayments made after construction is complete and the loan is fully drawn will be available via redraw, if your loan type supports redraw.
- If you do not withdraw your available advance funds (Cashback/redraw) before your loan moves to ANZ, those funds will be applied to your loan balance at the time of the move. You will not be able to request to withdraw your advance funds after your loan moves to ANZ.
After your final construction drawdown, your remaining loan term will be reduced to account for the 24-month construction period. We’ll then let you know your new Principal and Interest repayment amount and when those repayments will start.
What do I need to do before the move?
If construction is complete, tell us whether you still have undrawn funds. This will help us complete your loan setup correctly at ANZ.
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 24-month period from when your loan moves to ANZ).
If you want to access any additional repayments you’ve already made with Suncorp Bank, submit a Cashback withdrawal request 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
Our Home Loan Cashback feature lets you redraw funds that you've paid in advance of your normal scheduled home loan repayments.
You can still redraw this excess money at any time – for school and university expenses, a holiday, renovation, or any other purpose. This feature is available on Standard Variable and Back to Basics Variable home loans.
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.
