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Why clients might choose our building option

Designed for new builds
Our Standard Variable Rate Home Loan can be used for house & land packages, building their dream home or renovating. Available whether they have a contract builder or they’re an owner-builder.
Save on interest
Instead of paying interest on their whole loan from the start, they’ll only be charged interest on their loan balance as it increases with each drawdown.
Pay as they go, with progress drawdowns
They can make progress payments to their builder at the end of each construction stage, after they’ve given the approval to pay – so they’re always in control.

Steps – from applying to final payment

For a Licensed Builder’s fixed price contract

1. Application

  • Existing lending standards apply.
  • For single land and build applications, your client’s full contribution is needed at settlement.
  • For separate land and build applications with lengthy delays to build, complete an Approval in Principle (AIP) for the build.
  • Where First Home Owner Grant (FHOG) is being used, arrange for documents to be sent in with the application.


2. To-Be-Erected Valuation

  • Correct entry into ApplyOnline will ensure a To-Be-Erected valuation is ordered.
  • To ensure the valuer has all the info needed, upload valuation details to Valex.


3. Approval and Loan Offer

  • Review valuation to ensure payment schedule is to industry standard.
  • Review whether the valuation needs a Quantity Surveyor Report. Please note: a QSR may be required at each progress inspection.
  • Review risk ratings which need a referral to PACE.
  • Loan Offer is sent once the loan is approved.


4. Preparation for Settlement

  • Ensure your client has deposited their FULL contribution into a BankSA account ready for settlement.
  • Return your client’s signed verbal payment authority to allow for phone requests of payments.


5. Settlement

  • Operations Team manages the land settlement, and the loan then migrates to the Payments Team after settlement.
  • If a payment’s due to the builder as part of settlement, it will be made to the builder at settlement.


6. Payments

  • Payments are paid to the builder or reimbursed to your client for amount already paid.
  • Progress Inspections are required at certain stages and are completed by the valuer.


The building option is a lending option that releases funds to pay a Licensed Builder (or fund your client’s Owner-Builder project) throughout each stage of your client’s build or renovation process.

Your clients can read more on our building option customer page.


Summary guide

Are your clients renovating or building? This handy home loan option is structured around their build, with staged funding.

Important information

Credit Criteria, fees and charges apply. Terms and conditions available on request. Based on BankSA’s credit criteria, residential lending is not available for Non-Australian Resident borrowers.

This information's been prepared without taking your clients objectives, needs and overall financial situation into account. For this reason, your client consider the appropriateness of the information and, if necessary, seek appropriate professional advice. This includes any tax consequences arising from any promotions for investors and customers should seek independent advice on any taxation matters.

The information included on, or accessed via, this website is intended for interest only. The opinions and views expressed on, or accessed via, this website are:

  1. Provided in the writers’ and speakers’ personal capacities and as such are their sole responsibility; and
  2. Such opinions and views are not the opinions and/or views of Westpac and must neither be regarded as constituting advice on any matter nor be interpreted as such.

A selection of the images featured on this website have been sourced from Thinkstock and Getty Images.

If any of the information related to (or provided by) Westpac Group that you rely on is printed, downloaded or stored in any manner on your systems, files or otherwise, please ensure that you update your systems and files with the most up-to-date information provided by us and rely only on such updated information.

Also see Construction Option Guide FAQs (PDF 224KB)

BankSA - A Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.