Our building loan option

You could save on home loan interest by only drawing down the money you need as each construction stage is completed.

Why?
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Why choose our building option?

Designed for new builds

Our Standard Variable Rate Home Loan can be used for house & land packages, building your dream home or renovating. Available whether you have a contract builder or you’re an owner builder.

Save on interest

Instead of paying interest on your whole loan from the start, you’ll only be charged interest on your loan balance as it increases with each drawdown.

Pay as you go with progress drawdowns

Make progress payments to your builder at the end of each construction stage, after you’ve given the approval to pay – so you’re always in control. Logon and search for “progress payment” to access this feature.

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Designed for building

Funds only advanced in stages as your Contract Builder completes pre-agreed construction milestones.
You save on interest during the construction process period – as you only pay interest on the amount drawn.
Make Interest Only repayments until construction’s completed and your loan’s fully drawn down.

Could I top up my home loan instead?

Topping up

If you have enough equity to borrow the full building amount up front, then you may be able to top up (increase) your current BankSA home loan.

Your equity is your land/property’s current market value (the security), less your existing loan limit. A top up might suit small to medium renovations, and you can hold the funds in your offset account until you need to pay your builder or other tradies.

Our building option

If you don’t have enough equity to borrow the full amount up front, our building option can allow you to draw down in stages as the security value of the property increases.

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How do ‘progress payments’ work?

They let you use your construction option to pay for specific stages of your build or reno, at various steps of completion. We only charge interest on the amount you’ve drawn down, rather than the total construction option amount you’re approved for, which helps you keep the cost of your construction option down.

There are various ways progress payments can be requested, all advised within your ‘Builders Pack’.

If your builder needs money upfront to issue plans, you’ll need to cover that yourself. If you’re contributing any of your own money, do so before the first Progress Payment’s made.

Your final Progress Payment is subject to a satisfactory final inspection from our valuer, confirming the construction’s been completed as per the original plans and specs. You’ll also need a new building insurance quote.

Logon and search for “progress payment” to access this feature.

Are you ready to request a payment?

Buying land

For a house & land package, your first drawdown would be for the block of land, and subsequent progress drawdowns would be for each stage of the build.
Just buying land with no building contract? You can apply online for a regular BankSA home loan without a building option.
Looking to switch your existing land loan with another lender to BankSA? Apply to refinance today.

Standard Variable Home Loan rates

How much deposit do I need for a construction loan?

How to apply

Here’s a summary, but you’ll find everything you need to know in our building option guide.

1. Apply now

Submit your Standard Variable Rate Home Loan application online in as little as 20 minutes. You'll be assigned a home loan expert who’ll call you to chat about your home loan needs, including our building option and other home loan features.

2. For our valuation, we’ll need:

Council or Private Certified Approved Plans and specs (or a copy of yet-to-be approved/submitted plans for Council approval)
Your fully-itemised tender/contract.

3. If your loan is fully-approved:

Your Loan Agreement will include your Progress Payment Calculation Schedule, and Progress Payment application forms.
You’ll also receive 3 documents for your builder, including a Builder’s Copy of the Progress Payment Schedule.

4. Once you sign and return your loan documents:

We’ll let you know when building can start.

Building calculators

Options

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Request a call back

A BankSA home loan expert will call you back.

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Find your nearest branch or mobile lender.

Important information

Conditions, credit criteria, fees and charges apply. Based on BankSA’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change. Before making a decision, it’s best to read the terms and conditions.

Loan Accounts – Charges for specific services and accounts (PDF 55KB)

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.

The information on our website is prepared without knowing your personal financial circumstances. Before you act on this, please consider if it’s right for you. If you need help, call 13 13 76.

Our building loan option

Why choose our building option?

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Building calculators

Options

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