Your construction home loan

If you’re building or renovating your home, a construction home loan is a feature that is available to help you manage the payments to your builder. It’s available for both our Basic and Offset Home Loans.

Once your new construction home loan has settled, we’ll make progress payments to your builder at each stage of construction.

A one-off construction administration fee of $1,500 applies at settlement, which covers progress inspection costs and progress payments during the construction period.

Please note:

• Construction loans are not available for owner builders.
• Payments by cheque or cash are not available.

• At settlement, an approved set amount will be held. This amount will be used to make the progress payments to your builder at the completion of each stage of the build, in line with your fixed price building contract.
• If you’re required to contribute your own funds, this needs to be paid direct to the builder prior to submitting the first Progress Payment request to us.
• Any changes made to your fixed price building contract that isn’t contributed with your own funds, will need to be reviewed and re-approved by us.
• Construction must start within three months of settlement and must be completed within 24 months of settlement. We’ll send you a commencement letter at settlement, which you can provide to your builder.
• When your loan is approved and at settlement, we’ll send you a Construction Pack that includes the following:
  • FAQ’s including a breakdown of each stage and how to request a progress payment.
  • Guidelines for each stage of construction explaining what supporting documents you need to send with each progress payment request.
• If you have an Offset Home Loan facility, you can have up to 10 offset accounts linked to your construction account. To learn more about offset accounts, see Home loan offset accounts.

There are typically five stages of construction. Progress payments will be made at the completion of each of the following stages:

1. When you receive the invoice from the builder, you’ll need to sign the invoice and authorise the payment. To do this you’ll need to sign with wet-ink and include this note on the invoice – I/we authorise payment of this invoice.
2. Email the signed and authorised invoice and any supporting documents to constructionpayments@macquarie.com. Please see table below which outlines supporting documents you may need to include. Please also ensure that the email subject contains the words ‘Progress Payment’, and your application reference number, which can be found in the subject line on your settlement email e.g., APP-123456.

Once we’ve received all required documents, we’ll arrange a progress inspection if needed, and process the payment. You’ll receive a confirmation email once completed.

You’ll need to provide us with documents at certain stages throughout the build. Failure to provide these documents will result in delays processing the payment to the builder. Please see table below of what documents need to be provided and when:

For pool builds, the following documents need to be provided when request the first progress payment:

• Pool builder’s tax invoice signed with a note “I/we authorise payment of this invoice”
  
• Fully executed pool contract
• Current and valid homeowner’s warranty insurance
• Current and valid contract works insurance
• Current and valid public liability insurance
• Stamped and certified Council approved plans

If you qualify for the First Homeowner Grant, the payment will be released after the slab stage is completed.

To confirm if your First Homeowner Grant application has been submitted, please speak with your broker or banking specialist.

If you’ve already made a payment to the builder, we can reimburse you as long as Macquarie are holding the construction funds for that stage. You’ll need to send us the invoice from the builder and the receipt confirming payment has been made.

You’ll also need to provide the required documents in line with the above document guide.

You’ll need to let us know of any changes to the building construction, contract, or plans. Examples of the type of changes we need to know about include: 

• progress payment schedule
• post contract variation 
• council approved plans
• additional work (increase or decrease in amount allocated for the additional work item)
• builder failure or new builder engaged
• change in loan purpose
• any other changes that may happen throughout the process.

All changes will need to be reviewed and approved by us. Please email the details to constructionpayments@macquarie.com with any supporting documents noting the APP number in the email subject line.

We’ll need to review any changes to the progress payment schedule (PPS). Please email a copy of the new PPS as soon as the changes have been made and any relevant supporting documents. Please send to constructionpayments@macquarie.com along with the APP number noted in the email subject line.

Depending on the details of the change, a new valuation may be needed. Please allow up to 10 business days for this to be reviewed.

Any changes to the builder will need to be reviewed and approved by us. Please email constructionpayments@macquarie.com the following documents noting the APP reference in the subject line:

• new signed building contract
• new progress payment schedule
• stamped and certified council approved plans

Once we’ve received these and approved, we'll order a new valuation for the property and you’ll need to email constructionpayments@macquarie.com the following documents noting the APP reference in the subject line:

• current and valid Homeowners’ Warranty Insurance
• current and valid Contract Works Insurance
• current and valid Public Liability Insurance