Construction Loans

Build your own house with rates from

6.49% p.a. Variable

6.55%* p.a. Comparison *

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    Welcome to Reduce Home Loans. Awarded Australia’s Cheapest Home Loan by Money magazine 2016, 2017, 2018, 2019, 2020, 2021, and 2024

    Reduce Home Loans
    Based on 632 reviews
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    sara yuansara yuan
    03:52 18 Mar 24
    Working with Ben Ithell and his team was a great experience. The team was very knowledgeable and patient with my questions. They were always on time and reply my emails quickly.Excellent…I would give them my highest recommendation!
    Mark JohnstonMark Johnston
    01:37 06 Feb 24
    Ben Ithell was fantastic, laid all my options out for me. Got me good deal especially considering the unusual circumstances I was in. He kept me up to date, communicated well and was always available to help as I needed it.
    craig kimptoncraig kimpton
    10:02 18 Jan 24
    Professional staff that keep you well informed throughout the process, and provide great savings with lower rates.Ben Ithell was a pleasure to consult with, diligent and extremely professional throughout. Thanks Ben.
    vineet sagarvineet sagar
    08:06 16 Jan 24
    Vaughan Enright was great to deal with. Not only he is well versed with all the home loan technicalities, he also has soft skills to deal with not so knowledgeable people like myself. Communication was outstanding with emails/calls immediately being answered.
    Angie ChuAngie Chu
    11:16 09 Jan 24
    Thank you Reduce Home Loans! If we could give more than five stars, we would. Especially to Ben Ithell whose professionalism and help throughout the entire process was second to none. He is genuinely attentive, caring and a patient customer service/finance manager! We would certainly recommend him to anyone!
    Havea ValaHavea Vala
    16:41 08 Jan 24
    Jonathan DoddJonathan Dodd
    06:47 02 Jan 24
    Amazing experience, I cannot recommend this company or Kurt more. He found a path forward when multiple brokers (at other companies) could not make it work. Kurt does not mess around and I wholeheartedly recommend him if you need to get a loan.
    Alex JenkinsAlex Jenkins
    03:46 21 Dec 23
    I used Kurt Trendle from Reduce Home Loans when completing my refinance. I found him to be extremely helpful, patient and found the right loan for me. I found the whole process to be extremely easy with Kurt. Thanks again!
    Patrick SimonettiPatrick Simonetti
    13:25 22 Nov 23
    Kurt was excellent to deal with. Great customer service, very helpful and experienced. One of the best rates on the market.
    Kate EverettKate Everett
    08:27 08 Nov 23
    Exceptional customer service provided by Nick Freney in assisting us to navigate three separate loans. Wouldn’t hesitate in strongly recommending him to other prospect customers.
    Patrick DawsonPatrick Dawson
    05:55 30 Oct 23
    Just settled on my refinance with Vaughan at Reduce Home Loans. He made the process super easy and efficient. Was also great to be informed regularly throughout the entire process to put my mind at ease.Thanks 👍
    Rina WRina W
    23:27 28 Sep 23
    We have been with Reduce Home Loans since 2015 and they've consistently secured the best rates and account features for us. This month we refinanced to a very competitive rate thanks to our Personal Finance Manager Connor.Connor provided us with helpful guidance and thoroughly answered all our questions. Everything was completed promptly and he was so responsive with our queries. The application process has also become much more streamlined and user friendly over the years.Thanks to Connor (and previously Rhyse) at Reduce Home Loans, we've been able to achieve our dream of having a home for our family. We highly recommend them for their personalised, exceptional service and expertise, as well as their broad product offering. Thanks again!
    Dev GovekarDev Govekar
    23:10 24 Sep 23
    I have used Reduce Home Loans recently. I have dealt with Vaughan from Reduce Home Loans. I find Vaughan very helpful and easy to approach. I think they have great knowledge and great interest rates options and cash back offers. I will recommend to seek their advice for new home loans. Thanks, Dev
    Hin LHin L
    06:42 07 Sep 23
    Zachary has been fantastic through out the whole process.
    James ZhangJames Zhang
    07:43 21 Aug 23
    Kurt was phenomenal, very knowledgable, patient and communicative across the entire process. Can't recommend them highly enough.
    Melanie MaclureMelanie Maclure
    04:35 10 Aug 23
    Vaughan Enright has been an absolute pleasure to deal with. He is always extremely responsive and helpful, listens to my needs, and has been working with me to get the best he can. He has been reliable, getting back to me quickly, calling when he says he will (great timekeeper). Very happy with the experience as I initially called 3 or 4 months ago, he has been very informative from tyre kicking/semi serious stage to now at crunch time. Definitely recommend working with him.
    Wendy ReevesWendy Reeves
    02:23 03 Aug 23
    I have used Reduce Home loans several times to refinance our loan. I cannot recommend them highly enough. They are extremely knowledgeable and have access to highly competetive interest rates. Their communication throughout the loan application process is excellent and it is very easy to get in touch with them when you need to. Definitely use Reduce!
    Brad GosbellBrad Gosbell
    07:41 21 Mar 23
    Nick and the team never fail to impress and always achieve better than expected results. With a great network of lenders and products they always manage to deliver, keeping you well informed along the journey. Always know I am in capable hands and a achieving the best of what's out there.I cannot recommend Reduce highly enough. 11 out of 10! Keep up the good worm 👍
    Richard WRichard W
    04:34 20 Mar 23
    Prompt customer service and staightforward process. Access to great rates. Clear communication. Loan settled without problems and would definitely use them again.
    Kumbi MKumbi M
    04:06 20 Nov 22
    We have been working with Reduce Home Loans for a few years now. We have done some refinancing of home loans and have applied for new home loans with Reduce Home Loans. Each and every time we managed to get some awesome deals, lowest variable rates available on the market. I highly recommend Reduce Home Loans. We will definitely use them again in future!!
    Michelle DavisMichelle Davis
    21:15 15 Sep 22
    Nick Freney, from reduced home loans, was fantastic. He made the whole process of refinancing my house loan, hassle free and also got me a great interest rate. I can't recommend Nick and his team highly enough.
    Goran MaricGoran Maric
    03:46 15 Sep 22
    Reduce were very easy to work with, and they got us the lowest variable rate on the market - which is saving us thousands each year.Highly recommend. We'll definitely go with them again in the future.
    David ElmerDavid Elmer
    10:05 30 Aug 22
    Overall, we are happy with our experience at Reduce. We moved from another non-bank lender, who wouldn't move our rate, despite their new owner rates being much lower, and our loans under what we originally borrowed. Nick and the team from Reduce were very easy to deal with, and our rate has been competitive since we started with them.
    Jon McilveenJon Mcilveen
    06:52 11 Aug 22
    Just refinanced with Reduce Home Loans. Better interest rates, staff have been nothing but helpful and easy process. Can't ask for more!
    Chris LimChris Lim
    07:55 04 Aug 22
    I had a fantastic experience dealing with Reduce Home Loans who provided finance for my SMSF to purchase an investment property in July 22. I was particularly impressed with Bryce Stimpson's helpfulness, knowledge, responsiveness, professionalism and pleasantness. I received an excellent rate and am happy I went with Reduce.
    Peta GeakePeta Geake
    02:41 04 Aug 22
    Using reduce loans has saved me a lot of money on our home loan. The staff are professional and caring, always easy to get in contact with and there to help with any questions you. The switch from one of the big 4 banks (wont name names of who was ripping us off!) was easy with reduce loans. I highly recommend anyone to get in contact and see how many money they can save you.
    Amanda BeresfordAmanda Beresford
    20:09 16 Jun 22
    Reduce Loans were able to find us a much better home loan rate. The process was so easy and we were walked through every step. Everything was done online and the whole process was handled quickly. I would highly recommend working with Reduce Loans.
    Matt HingstonMatt Hingston
    00:42 16 Jun 22
    We secured a great loan with Reduce far below market rates of the large lenders. Was particularly impressed by their flexible banking style in setting up the loan and Nick Freeney was great to work with in the loan application. The only issue is the application process was longer and more admin intensive than some other loans so removing one star - but if you stick with it you can save a bunch over the life of the loan.

    Apply for your construction loan today – Get competitive rates and excellent features

    For most, there’s nothing better than buying a house for the family. The ultimate Australian dream, though, is to build your own house, to your own design, guaranteeing your perfect home.

    Now you can build your own perfect home, with an affordable construction loan from Reduce Loans.

    What is a Construction Loan?

    Construction home loans (sometimes called “building loans”) are different from standard mortgages. With a traditional home loan, you receive all the capital upfront, to purchase your home and you begin making repayments, including interest.

    A construction loan is typically shorter term, and the money is released in stages as the construction progresses. This allows you to avoid taking out a full mortgage before you even break ground on your house. 

    You will receive funds, known as ‘progress payments’, to the current value of the property as it is being built. You make repayments and owe interest only on the value of the capital which has been released to you. 

    The House-building phases

    You will receive portions of your agreed loan during each phase of the construction. You will use the funds to pay for materials, your building company and any contractors’ fees. 

    • Phase 1 Laying the base/pouring the concrete slabInitial plumbing and foundations
    • Phase 2 Putting up the frame- The basis for the walls of your future home
    • Phase 3 Lockup stage- Completion of the roof, external walls, doors and windows mean your home can be secured for the first time
    • Phase 4 Fixtures and fittings- Plumbing and electricity throughout, internal walls and floors, including waterproofing. ‘Fix out’ – skirting boards, cupboards, etc. Installation of appliances
    • Phase 5 – finalise and completion- All the finishing touches, a clean-up and the handover of the keys to the delighted new homeowner!

    You’re normally required to use all the funds provided for the stage before continuing.

    Construction loans - Reduce Home Loans

    Building your own dream home

    Economizer Variable Construction 80

    p.a. Variable
    p.a. Comparison
    • FAST Online Approval
    • Up to 80% LVR
    • Optional offset account
    • Unlimited extra repayments

    Rate Slasher Construction 90

    p.a. Variable
    p.a. Comparison
    • FAST Online Approval
    • Up to 90% LVR
    • Optional offset account
    • Unlimited extra repayments

    What are the benefits of a construction loan?

    You only make repayments and accrue interest on the value of the funds supplied to you. A construction loan means you don’t have to begin repaying the entire loan from the start. 

    If there are delays to the building project, you will still only have to repay the funds you’ve received. Delays can be caused by bad weather, supply problems or a lack of available tradespeople.

    What documentation is required?

    In addition to the standard documents in support of an application for a house loan, when applying for a construction loan, you should have the following documentation:

    • Local Council approval for your building project
    • A signed contract with a construction company
    • Finalised construction plans
    • Quotes for materials and from contractors
    • Insurance policies – these may include
      • home warranty insurance – in case the building is not completed
      • public liability insurance – cover for injury or property damage
      • builder’s insurance – covers risks to your home during the building phases

    What additional fees are there?

    If not included in your contracts with the builder, you may also want, or be required, to pay fees for various inspections and valuations, including:

    • Building inspection
    • Termite inspection
    • Pest inspection
    • Structural engineer’s report
    • Quantity surveyor’s report
    • Mortgage valuation

    These inspections and valuations help ensure you, and your lender, are getting the best value and quality from your construction.

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    Features available for you

    Some of the features available on our construction loans:

    Offset accounts

    • Reduce the interest charged on your loan
    • Use the offset account for standard, day-to-day banking
    • Your Interest rate will be calculated based on your outstanding loan balance minus the balance of your offset account

    Flexible repayment options

    • You can reduce the duration of the loan by making additional repayments 

    Redraw facility

    • Access and withdraw funds you have paid as additional repayments. For emergencies or treats.

    Interest-only loans available

    • Property investors may be interested in our interest-only loans to make the most of their income from rent

    Easy access to your accounts

    Internet and phone transfer facilities give you the ability to access your accounts anywhere at any time, to suit your lifestyle.

    At Reduce Loans, we aim to help you select the best home loan for you and your situation. This information is to guide your choices.

    Contact our friendly, expert team with any questions. 

    For more information about construction home loans, get in touch today!