Construction Home Loan
The Australian Military Bank Construction Home Loan is perfect for those wanting to build or renovate their homes. With interest only repayments to help you save during the construction period, our Construction Home Loan helps you to relax during this often stressful time.
Borrow up to 90%
of your property's value
Home construction
and renovations
No monthly
or annual fees
Overview
The Construction Home Loan has a great range of features:
- Progressive draw down payments throughout construction
- Minimum loan amount of just $50,000
- Loan term of up to 2 years
- The option to make extra repayments to reduce your loan term
- Interest only repayments during the construction phase to help you save
- No monthly fees
- No annual fees
Rates & Fees
Here’s everything you need to know about the rates and fees
for the Construction Home Loan:
- Interest rate: 6.53% p.a.2
- Comparison rate*: 6.56% p.a.3
*Comparison rate based on a loan of $150,000 repaid over 25 years. WARNING: The comparison rate is applicable only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
- Application fee: $450
- Monthly fee: $0
- Annual fee: $0
- Draw down fee: $65 per drawing
- Mortgage discharge fee: $120
- Lenders Mortgage Insurance (LMI)4: Payable for loans with a deposit of less than 20% of the purchase price
- 3rd party charges: Stamp duty, legal fees and valuation fees apply
Additional fees may be payable. For more information please see our Fees and Charges Schedule.
Download our Fees and Charges Schedule
Questions
Here are the top 5 questions we get asked about our Construction Home Loan. Have a different question? Call 1300 13 23 28 to speak to a home loan consultant.
How long do I have to build my home?
The construction period is up to 2 years from the date of settlement.
What happens after I’ve built my home?
Once your construction is complete, you’ll revert to another of our home loans. Talk to us about which of our options may suit your lifestyle.
How do the progressive draw downs work?
Progressive draw down allows you to pay the builder for the construction or renovation in 3 stages as the building work reaches each stage of completion. Australian Military Bank will arrange a valuation to conduct progress inspections prior to payment. Please note these inspections may be subject to fees and charges.
Can I may extra payments on my loan?
Yes. You can make additional repayments on your loan which can help you to reduce your overall loan term.
I don’t need to borrow much money. What is the minimum amount?
With the Construction Home Loan you can borrow as little as $50,000.
starting from
starting from
Use the arrows to scroll through the many Australian Military Bank Home Loans options RESET
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Our simple vanilla loan with a super-low variable rate, unlimited additional repayments as well as the ability to redraw.5.89% p.a.5.92% p.a.Up to 95%$0$0Principal and interest only$150,000Up to 30 yearsOwner OccupierVariable
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Get the flexibility of a variable rate with the benefit of a 100% offset facility6.29% p.a.6.32% p.a.Up to 95%$0$0Principal and interest$150,000Up to 30 yearsOwner OccupierVariable
-
Two year fixed home loan offering the security of knowing what your repayments will be5.59% p.a.6.54% p.a.Up to 90%$0$0Principal and interest$150,000Up to 30 years with a 2 year fixed rate periodOwner OccupierFixed
-
Three year fixed home loan offering the security of knowing what your repayments will be5.74% p.a.6.48% p.a.Up to 90%$0$0Principal and interest$150,000Up to 30 years with a 3 year fixed rate periodOwner OccupierFixed
-
A variable rate loan helping you to build your dream home, granny flat or renovate your existing home6.53% p.a.6.56% p.a.Up to 90%$0$0Interest only$50,0002 yearsOwner OccupierVariable
-
Variable rate home loan with the benefit of 100% offset facility6.73% p.a.6.76% p.a.Up to 95%$0$0Principal and interest$50,000Up to 30 yearsOwner OccupierVariable
-
One year fixed home loan offering the security of knowing what your repayments will be5.99% p.a.6.69% p.a.Up to 90%$0$0Principal and interest$150,000Up to 30 years with a 1 year fixed rate periodOwner OccupierFixed
-
Five year fixed home loan offering the security of knowing what your repayments will be6.05% p.a.6.46% p.a.Up to 90%$0$0Principal and interest$150,000Up to 30 years with a 5 year fixed rate periodOwner OccupierFixed
The small print
Rates effective for new business from 27 March 2025. Lending criteria, terms, conditions, fees and charges (including early break fees) apply.
1 During an Interest Only period, your interest only repayments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.
2 Interest rates are based on new owner occupier home loans for $150,000 or more with a minimum deposit of:
- 40% for RateSaver and Value loans (incl. DHOAS) when making monthly principal & interest repayments,
- 10% for Fixed Rate loans (incl. DHOAS) when making monthly principal & interest repayments,
- 10% for Construction loans (incl. DHOAS) when making monthly interest only repayments,
- 5% for Standard Variable loans (incl. DHOAS) when making monthly principal & interest repayments.
Rates are available for new loan applications, include a discount to the applicable reference rate and subject to change.
At the end of the fixed period on the Fixed Rate Home Loans (incl. DHOAS), the loan will convert to the Standard Variable Home Loan (incl. DHOAS) at the applicable variable rate for a principal and interest loan.
3 Comparison rate based on a $150,000 secured loan over 25 years with monthly repayments. WARNING: This comparison rate applies only to the example given and may not include all fees and charges. Different terms, fees and loan amounts will result in a different comparison rate. Comparison rates for variable interest only home loans are based on an initial 5-year interest only period. Comparison rates for fixed rate interest only home loans are based on an initial interest only period equal in term to the fixed period.
4 Lenders Mortgage Insurance (LMI) is required when borrowing more than 80% loan to value ratio (LVR). Our LMI provider may require additional terms and conditions. The calculation of the maximum LVR includes the LMI premium (except for Construction Home Loan, where it’s exclusive of the LMI premium). Further restrictions may apply as required by our Lender’s Mortgage Insurance provider.
5 The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers to buy a home sooner. The Scheme is administered by Housing Australia. You can find more information about the HGS on the Housing Australia website.
6 Based on total average monthly balance and applies to ATM, EFTPOS, Direct Debit and BPAY® transactions.
The Target Market Determinations (TMD) for our products are available here
® Registered to BPAY Pty Ltd ABN 69 079 137 518
The small print
Rates effective for new business from 27 March 2025. Lending criteria, terms, conditions, fees and charges (including early break fees) apply.
1 During an Interest Only period, your interest only repayments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.
2 Interest rates are based on new owner occupier home loans for $150,000 or more with a minimum deposit of:
- 40% for RateSaver and Value loans (incl. DHOAS) when making monthly principal & interest repayments,
- 10% for Fixed Rate loans (incl. DHOAS) when making monthly principal & interest repayments,
- 10% for Construction loans (incl. DHOAS) when making monthly interest only repayments,
- 5% for Standard Variable loans (incl. DHOAS) when making monthly principal & interest repayments.
Rates are available for new loan applications, include a discount to the applicable reference rate and subject to change.
At the end of the fixed period on the Fixed Rate Home Loans (incl. DHOAS), the loan will convert to the Standard Variable Home Loan (incl. DHOAS) at the applicable variable rate for a principal and interest loan.
3 Comparison rate based on a $150,000 secured loan over 25 years with monthly repayments. WARNING: This comparison rate applies only to the example given and may not include all fees and charges. Different terms, fees and loan amounts will result in a different comparison rate. Comparison rates for variable interest only home loans are based on an initial 5-year interest only period. Comparison rates for fixed rate interest only home loans are based on an initial interest only period equal in term to the fixed period.
4 Lenders Mortgage Insurance (LMI) is required when borrowing more than 80% loan to value ratio (LVR). Our LMI provider may require additional terms and conditions. The calculation of the maximum LVR includes the LMI premium (except for Construction Home Loan, where it’s exclusive of the LMI premium). Further restrictions may apply as required by our Lender’s Mortgage Insurance provider.
5 The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers to buy a home sooner. The Scheme is administered by Housing Australia. You can find more information about the HGS on the Housing Australia website.
6 Based on total average monthly balance and applies to ATM, EFTPOS, Direct Debit and BPAY® transactions.
The Target Market Determinations (TMD) for our products are available here
® Registered to BPAY Pty Ltd ABN 69 079 137 518