What is a Construction Loan?
As your builder completes the different stages of the home building process, a Construction Loan gives you the funds (known as progress payments) to pay them as they complete each stage.
Why choose HomeStart for your Construction Loan?
Whether you’re a first home buyer looking for a house and land package with one of our partner builders, or looking to buy your own block of land and choose your licensed builder, we have different construction loan options to suit your situation and your needs.
How does our Construction Loan work?
Our low deposit construction loan options are available through our HomeStart Loan or Graduate Loan.
Both loans offer flexible interest rates and repayment options and are available when building a home in South Australia, for residential use only.
To learn more about these loans go to our home loans or get in touch with us.
Features and benefits of our Construction Loans
No repayments for the first 12 months or until your home is built, whichever comes first.
It’s challenging to pay rent while building a home. If you choose this loan, you don’t have to pay loan repayments for the first 12 months of building or until your home is complete, whichever comes first.
Are you a first home buyer?
You may be eligible for the First Home Owner Grant of up to $15,000 toward your deposit, fees and charges for building a home. We can tell you more about the Grant and help you apply. Go to Revenue SA to find out more.
Save on stamp duty costs
If you are a first home buyer and choose to build your own home, you may be eligible for stamp duty relief, potentially saving you thousands. Alternatively, if you purchase a newly built or off-the-plan home, you may also be eligible.
Choose to buy land now, build later or buy a house and land package
If you wish to select your own licensed builder, you can buy a block of land now and build on it at a later stage. This gives you an opportunity to save money and reduce your home loan balance by the time it comes to build.
Boost your borrowing power
If you meet HomeStart’s eligibility requirements, you may be eligible for one of our additional loans which can help boost your borrowing power and cover upfront costs, getting you into your own home, sooner. Find out more about our home loans.
Build with our participating builders
With a house and land package, you can buy land and choose from a wide selection of home designs at the same time. This option saves you time, effort and can reduce your costs.
Please note, this information does not constitute financial advice. It is the purchaser’s responsibility to seek independent advice as to whether a house and land package suits their financial situation and needs.
How to apply?
Explore house and land packages with our partner builders. Contact them directly to learn about HomeStart's low upfront cost home loans or reach out to us for more information.
Additional benefits with our partner builders
Alongside the usual benefits of our construction loans, building with one of our partner builders on the 2% Construction Loan offers additional benefits:
Fixed price for your peace of mind
Our partner builders will commit to a fixed price before your loan is approved, giving you reassurance that you’ll have the funds you need for your new home. You’ll only incur extra costs if you request any modifications to the contract.
Pay less interest on fewer progress payments
Builders usually require six progress payments – called ‘drawdowns’ – during construction. Each drawdown adds to the amount of interest on the home loan.
When a HomeStart loan is combined with a house and land package with one of our partner builders, there are usually only three drawdowns. This could save you thousands of dollars in interest.
Lower deposit
With just a 2% deposit to build, you don’t need to wait as long to save for a deposit, meaning you can start building the home you want sooner.
What if I don’t want a house and land package with a partner builder?
You can purchase your land and choose your own builder. Or you can select a house and land package with other licensed builders through our Graduate Loan or HomeStart Loan.
You can start with as little as 5% deposit plus upfront costs to build with a Graduate Loan and 8% deposit plus upfront costs to build with a HomeStart Loan.
If you're a first home buyer, you may still be eligible for the First Home Owner Grant and Stamp Duty Relief. You will need to check your eligibility with Revenue SA.