Construction Loan
The Australian Military Bank Construction 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 Loan helps you to relax during this often stressful time.

Borrow up to 95%
of your property's value

Home construction
and renovations

No monthly
or annual fees
Overview
The Construction 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 Loan:
- Interest rate: 3.38% p.a.2
- Comparison rate*: 3.42% 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: $500
- Monthly fee: $0
- Annual fee: $0
- Draw down fee: $65 per drawing
- Mortgage discharge fee: $300
- 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 Schedule of Fees and Charges.
Download our Schedule of Fees and Charges

Questions
Here are the top 5 questions we get asked about our Construction 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 Loan you can borrow as little as $50,000.

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.2.98% p.a.2.99% 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 facility3.19% p.a.3.23% p.a.Up to 95%$0$0Principal and interest$250,000Up to 30 yearsOwner OccupierVariable
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Variable rate home loan with the benefit of 100% offset facility4.08% p.a.4.12% 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 be2.89% p.a.4.55% p.a.Up to 95%$0$0Principal and interest$150,000Up to 30 years with a 1 year fixed rate periodOwner OccupierFixed
-
Two year fixed home loan offering the security of knowing what your repayments will be2.49% p.a.4.32% p.a.Up to 95%$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 be2.64% p.a.4.19% p.a.Up to 95%$0$0Principal and interest$150,000Up to 30 years with a 3 year fixed rate periodOwner OccupierFixed
-
Five year fixed home loan offering the security of knowing what your repayments will be3.29% p.a.4.15% p.a.Up to 95%$0$0Principal and interest$150,000Up to 30 years with a 5 year fixed rate periodOwner OccupierFixed
-
A variable loan that allows you to borrow up to 80% of your property's value4.90% p.a.naUp to 80% of the property value$5$0Minimum of 1% of limit per month$50,000N/AOwner Occupier or InvestorVariable
-
A variable rate loan helping you to build your dream home, granny flat or renovate your existing home3.38% p.a.3.42% p.a.Up to 95%$0$0Interest only$50,0002 yearsOwner OccupierVariable
The small print
Applications are subject to Australian Military Bank’s normal lending criteria. Full terms and conditions will be included with our loan offer. Fees and charges are payable. Rates are effective from 22 February 2021 and are subject to change.
1 Rates shown apply during the fixed period of your loan. After the fixed period, your rate will switch to the applicable variable rate for a principal and interest loan. Terms and conditions apply.
2 Rates are current at the time of publication and are subject to change. The rates displayed are at 80% LVR (meaning that a minimum 20% deposit is required). The rates displayed are only available for new owner occupier, loan borrowings of $150,000 or more (excluding the Value Home Loan & Construction Home Loan, the interest rate displayed is applicable for new loan borrowings of $500,000 or more).
3 Comparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments. These rates are for secured loans only. The rates displayed are at 80% LVR (meaning that a minimum 20% deposit is required). WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
4 This amount is inclusive of Lenders Mortgage Insurance (LMI) premium. LMI is required when borrowing in excess of 80% LVR. Further restrictions may apply as required by our Lender’s Mortgage Insurance provider.
5 Based on total average monthly balance and applies to ATM, EFTPOS, Direct Debit and BPAY® transactions.
6 The First Home Loan Deposit Scheme is an Australian Government initiative to help first home buyers get into their first home sooner. Australian Military Bank is proud to be supporting the initiative and supporting eligible first home buyers enter the property market. This is subject to available offers. For more information, click here.
® Registered to BPAY Pty Ltd ABN 69 079 137 518
The small print
Applications are subject to Australian Military Bank’s normal lending criteria. Full terms and conditions will be included with our loan offer. Fees and charges are payable. Rates are effective from 22 February 2021 and are subject to change.
1 Rates shown apply during the fixed period of your loan. After the fixed period, your rate will switch to the applicable variable rate for a principal and interest loan. Terms and conditions apply.
2 Rates are current at the time of publication and are subject to change. The rates displayed are at 80% LVR (meaning that a minimum 20% deposit is required). The rates displayed are only available for new owner occupier, loan borrowings of $150,000 or more (excluding the Value Home Loan & Construction Home Loan, the interest rate displayed is applicable for new loan borrowings of $500,000 or more).
3 Comparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments. These rates are for secured loans only. The rates displayed are at 80% LVR (meaning that a minimum 20% deposit is required). WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
4 This amount is inclusive of Lenders Mortgage Insurance (LMI) premium. LMI is required when borrowing in excess of 80% LVR. Further restrictions may apply as required by our Lender’s Mortgage Insurance provider.
5 Based on total average monthly balance and applies to ATM, EFTPOS, Direct Debit and BPAY® transactions.
6 The First Home Loan Deposit Scheme is an Australian Government initiative to help first home buyers get into their first home sooner. Australian Military Bank is proud to be supporting the initiative and supporting eligible first home buyers enter the property market. This is subject to available offers. For more information, click here.
® Registered to BPAY Pty Ltd ABN 69 079 137 518