Construction Loan Rates, August 2026
Home loans for building rather than buying, across Australian lenders, sorted by comparison rate. Construction loans draw down in stages as the build progresses, with interest only on what's drawn. Refreshed daily.
RBA cash rate 4.35%(effective 12 Aug 2026)|Rates updated |5,892 products|54 Australian lenders
Editor's Pick · Ratesniffers Editorial Team
Top Home Loan Rates in August 2026
Reviewed by the Ratesniffers Editorial Team, August 2026
The sharpest construction home loan rates for building a new home. These suit buyers with a fixed-price building contract who need staged drawdowns and interest-only repayments through the build. Refreshed daily, no commercial filtering.
Type
Lender & product
Rate p.a.
Comp. rate p.a.*
Max LVR
Variable rate
RACQ BankFair Dinkum Home Loan (Construction)
5.89%
5.89%
60%
Fixed rate
GMCUFixed Rate 18 months - Special construction offer
6.39%
6.71%
95%
Fair Dinkum Home Loan (Construction)
Owner-occupierVariableP&IRedraw
Interest
5.89%p.a.
27d ago
Comparison*
5.89%p.a.
Monthly repayment
$2,962
LVR ≤60%
Construction Home Loan
Owner-occupierVariableP&I
Interest
5.90%p.a.
41d ago
Comparison*
5.98%p.a.
Monthly repayment
$2,966
LVR ≤95%
Real Deal Home Loan Special (Construction)
Owner-occupierVariableP&IRedraw
Interest
5.94%p.a.
Comparison*
5.98%p.a.
Monthly repayment
$2,978
LVR ≤80%
Clean Energy Home Loan Renovate (Construction)
Owner-occupierVariableP&IOffsetRedraw
Interest
5.95%p.a.
Comparison*
5.99%p.a.
Monthly repayment
$2,982
LVR ≤90%
Pacific Mortgage Group
Construction Home Loan
Owner-occupierVariableP&IRedraw
Interest
5.99%p.a.
20d ago
Comparison*
5.99%p.a.
Monthly repayment
$2,995
LVR ≤80%
Variable Home Loan (Construction)
Owner-occupierVariableP&IOffsetRedraw
Interest
5.99%p.a.
27d ago
Comparison*
6.02%p.a.
Monthly repayment
$2,995
LVR ≤70%
OMG Home Loan (Construction)
Owner-occupierVariableP&IRedraw
Interest
5.99%p.a.
Comparison*
6.03%p.a.
Monthly repayment
$2,995
LVR ≤80%
liteBlue Variable (Construction)
Owner-occupierVariableP&IRedraw
Interest
5.99%p.a.
Comparison*
6.03%p.a.
Monthly repayment
$2,995
LVR ≤60%
Basic Variable Home Loan (Construction)
Owner-occupierVariableP&IOffsetRedraw
Interest
5.99%p.a.
Comparison*
6.03%p.a.
Monthly repayment
$2,995
LVR ≤70%
Everyday Variable Home Loan (Construction)
Owner-occupierVariableP&IRedraw
Interest
5.99%p.a.
27d ago
Comparison*
6.04%p.a.
Monthly repayment
$2,995
LVR ≤80%
Basic Home Loan Variable (Construction)
Owner-occupierVariableP&IRedraw
Interest
5.99%p.a.
27d ago
Comparison*
6.05%p.a.
Monthly repayment
$2,995
LVR ≤80%
Basic Home Loan (Construction)
Owner-occupierVariableP&IRedraw
Interest
6.04%p.a.
Comparison*
6.08%p.a.
Monthly repayment
$3,011
LVR ≤60%
Variable Home Loan Package Special Offer (Construction)
Owner-occupierVariableP&IOffsetRedraw
Interest
6.04%p.a.
Comparison*
6.08%p.a.
Monthly repayment
$3,011
LVR ≤60%
Budget Home Loan (Construction)
Owner-occupierVariableP&IRedraw
Interest
6.04%p.a.
Comparison*
6.08%p.a.
Monthly repayment
$3,011
LVR ≤80%
Total Home Loan Package Variable OO PI (Construction)
Owner-occupierVariableP&IOffsetRedraw
Interest
6.09%p.a.
Comparison*
6.13%p.a.
Monthly repayment
$3,027
LVR ≤60%
Basic Variable Construction 70% - 80% LVR Owner Occupied
Owner-occupierVariableInterest onlyRedrawExtra repayments
Interest
6.24%p.a.
Comparison*
—
Monthly repayment
$3,075
LVR 70–80%
Fixed Rate 18 months - Special construction offer
Owner-occupier18mo FixedInterest onlyOffsetRedrawExtra repayments
Interest
6.39%p.a.
Verify, 60d old
Comparison*
—
Monthly repayment
$3,124
LVR ≤80%
Construction Home Loan
Owner-occupierVariableInterest only
Interest
6.54%p.a.
43d ago
Comparison*
—
Monthly repayment
$3,174
LVR —
AFG Home Loans - Retro
Retro Construction (<$750k 70% - 80% LVR) Owner Occupied P&I.
Owner-occupierVariableP&IOffsetExtra repayments
Interest
6.59%p.a.
Comparison*
—
Monthly repayment
$3,190
LVR 70–80%
Premier Package Home Loan Owner Occupied Construction Variable LVR<80%
Owner-occupierVariableInterest onlyOffsetRedrawExtra repayments
Interest
6.44%p.a.
Verify, 73d old
Comparison*
6.69%p.a.
Monthly repayment
$3,141
LVR ≤80%
Construction <98% LVR Owner Occupied P&I
Owner-occupierVariableInterest only
Interest
6.79%p.a.
Comparison*
—
Monthly repayment
$3,256
LVR ≤95%
Granite Home Loans
Visa Holders Loan Construction Owner Occupied <80% LVR <$3.5m P&I
Owner-occupierVariableP&IOffsetRedrawExtra repayments
Interest
6.79%p.a.
Comparison*
—
Monthly repayment
$3,256
LVR ≤80%
The Capricornian Bank
No Frills Home Loan Owner Occupied Construction <80% LVR
Owner-occupierVariableInterest onlyExtra repayments
Interest
6.99%p.a.
19d ago
Comparison*
—
Monthly repayment
$3,323
LVR ≤80%
AMP Bank
Professional Variable <90% LVR $500k+ Owner Occupied Construction
Owner-occupierVariableInterest onlyOffsetRedrawExtra repayments
Interest
7.14%p.a.
Comparison*
—
Monthly repayment
$3,374
LVR ≤90%
Firstmac
Construction <80% LVR Owner Occupied
Owner-occupierVariableInterest onlyOffsetRedrawExtra repayments
Interest
7.34%p.a.
Comparison*
—
Monthly repayment
$3,441
LVR ≤80%
Hejaz Financial Services
Gold Home Loan Owner Occupied 70% - 80% LVR <$3.5m Construction
Owner-occupierVariableInterest onlyOffsetRedrawExtra repayments
Interest
7.40%p.a.
Comparison*
—
Monthly repayment
$3,462
LVR 70–80%
Tailored Home Loan Standard Variable Owner Occupied 80% - 90% LVR IO (Construction only)
Owner-occupierVariableInterest onlyOffsetRedrawExtra repayments
Interest
7.46%p.a.
Comparison*
—
Monthly repayment
$3,482
LVR 80–90%
Discounted Basic Variable Home Loan (Construction)
Owner-occupierVariableP&IRedraw
Interest
5.92%p.a.
20d ago
Comparison*
7.57%p.a.
Monthly repayment
$2,972
LVR ≤80%
Greater Bank
Ultimate Home Loan (Construction)
Owner-occupierVariableP&IOffset
Interest
7.86%p.a.
21d ago
Comparison*
7.87%p.a.
Monthly repayment
$3,620
LVR ≤80%
AFG Home Loans - Bright
Easy Builder Full Doc/Alt Doc 75% - 80% LVR IO Owner Occupied
Owner-occupierVariableInterest onlyRedrawExtra repayments
Interest
8.34%p.a.
Comparison*
—
Monthly repayment
$3,788
LVR 75–80%
LaTrobe Financial
Construction Loan Credit Grade A 75% - 80% LVR <$3m Owner Occupied
Owner-occupierVariableInterest onlyExtra repayments
Interest
8.49%p.a.
Comparison*
—
Monthly repayment
$3,841
LVR 75–80%
Construction Loan Var Rate
Owner-occupierVariableP&IOffsetRedrawExtra repayments
Interest
8.68%p.a.
52d ago
Comparison*
8.75%p.a.
Monthly repayment
$3,909
LVR —
Pepper Essential Full Doc 85% - 90% LVR Construction Owner Occupied
Owner-occupierVariableP&IOffsetRedrawExtra repayments
Interest
9.44%p.a.
Comparison*
—
Monthly repayment
$4,182
LVR 85–90%
*Important Information and Comparison Rate 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. The comparison rate displayed is based on a loan of $150,000 over a term of 25 years.
The information provided on this site is general in nature and does not take into account your objectives, financial situation or needs. Before acting on any information, consider whether it is appropriate for you and read the relevant Credit Guide and lender disclosures.
What is a construction home loan?
A construction loan funds a home you are building, releasing money in stages as each build milestone completes, with interest charged only on the amount drawn so far. The lowest rate Ratesniffers tracks as of 22 August 2026 is 5.89% p.a. Once the build finishes, it converts to a standard principal-and-interest home loan.
Construction loan features by lender
Each lender's cheapest tracked construction rate today, and whether that lender offers an offset account, redraw or extra repayments during the build, drawn directly from the top 10 of 33 lenders in the live table above.
Feature availability during the construction phase itself can differ from the post-completion loan, confirm with the lender before relying on it.
How do construction loan repayments work?
During the build you pay interest only on the funds drawn to date, so repayments start small and rise with each drawdown, which keeps holding costs manageable while you may still be paying rent. When construction finishes, the loan rolls into a normal principal-and-interest loan for the full balance and repayments step up. Estimate the post-construction repayment with the repayment calculator.
Which lenders offer construction loans?
As of 22 August 2026, Ratesniffers is tracking construction home loans from 33 Australian lenders. Not every lender offers build finance, and their valuation and progress-payment processes differ, so lender fit matters as much as the rate. The table above shows current construction rates ranked by comparison rate.
Are construction loan rates higher?
Not usually by much. The rate is broadly comparable to a standard loan. The bigger differences are the fees, the valuation done on completion, and the drawdown administration, not a large rate premium. Compare against the cheapest standard rates so you know the gap.
Construction loan questions, answered
What is a construction home loan?
A construction loan funds a home you are building rather than buying finished. Instead of one lump sum at settlement, the lender releases the money in stages (called progressive drawdowns) as each build milestone is completed: slab, frame, lockup, fit-out and completion. You usually pay interest only on the amount drawn so far during the build, then the loan converts to a standard principal-and-interest home loan once the house is finished.
How do construction loan repayments work?
During the build you pay interest only on the funds drawn to date, so your repayments start small and rise with each drawdown. That keeps holding costs down while you may also be paying rent. When construction finishes, the loan rolls into a normal principal-and-interest loan for the full balance, and repayments step up accordingly. Interest-only-during-construction is standard, not an upgrade.
Which lenders offer construction loans?
As of 22 August 2026, Ratesniffers is tracking construction home loans from 33 Australian lenders. The live table above shows current construction rates ranked by comparison rate. Not every lender offers construction finance, and their valuation and progress-payment processes differ, so the lender fit matters as much as the rate.
Are construction loan rates higher than normal home loans?
Not usually by much. The rate is broadly comparable to a standard loan; the real differences are the progressive-drawdown administration, the on-completion valuation, and fees rather than a large rate premium.
How much deposit do I need for a construction loan?
Similar to a standard purchase, typically 20% of the total land-plus-build cost to avoid Lenders Mortgage Insurance, though many lenders accept less with LMI. Lenders assess the 'on completion' value from your fixed-price building contract and plans, and lend against that, so a fixed-price contract from a licensed builder makes approval smoother.
Next: work out your borrowing capacity with the borrowing power calculator, compare all home loan rates, check first home buyer options if you are building your first home, or see green home loan discounts if the build will meet a high energy-efficiency or NatHERS rating.