This is a loan to purchase land and construct a new home. A condition of construction loans is that the house is to be built by a registered licensed builder under a fixed-price contract.
For these types of loans, IBA will release loan funds on a progressive drawdown basis, with progress/valuation certification at each stage of construction.
The house construction must be completed within a time period approved by IBA.
Thinking about constructing?
Watch our 5-part series, Brick by Brick, with Yawaru woman Justine Kinney and property expert Garrick Smith for those thinking about taking the big step to construct.
You can also check out our frequently asked questions on the construction process, with tips and information to help you when building your home:
- FAQ 1: Before deciding if you want to build a home
- FAQ 2: Before signing a building contract
- FAQ 3: Post contract
Regional Construction loan
You may also be eligible for a Regional Construction loan package for new customers building a home in regional areas which includes:
- Up to $5,000 establishment fee grant available to customers pre-approved or approved for Regional Construction Loans from 27 January 2021 to 30 June 2022 inclusive (or earlier if budget is exhausted*). The grant is to be used to offset conveyancing costs and valuation fees.
- A fast-track application process
- 0 % interest / $0 repayments for up to 9 months (to limit the financial burden while building)
- low deposit requirements
- no application fees or lenders mortgage insurance.