Building Loan Calculator
Planning to build? Calculate the repayment on your final loan amount and understand the Progress Payment process.
Construction Finance Glossary
- NHBRC Enrollment Fee
- By law, your builder must enroll the new home with the National Home Builders Registration Council (NHBRC). This insurance fee is usually calculated on the value of the build and must be paid before the bond is registered.
- Interim Interest
- The interest charged by the bank on the money drawn during construction. It increases as more draws are made. You must budget cash for this monthly expense while you are likely also paying rent elsewhere.
- Retention Amount
- The bank often holds back the final payment (e.g., 5-10%) until the house is fully complete and you have signed a "Happy Letter" confirming you are satisfied with the quality.
- Turnkey vs. Owner Builder
- Banks prefer "Turnkey" projects (a developer builds it for a fixed price). "Owner Builder" loans (where you manage subcontractors) are very difficult to get approved without high cash reserves.
Building Loan Questions
How do building loan repayments work?
During the construction phase (usually 6-9 months), you only pay 'interim interest' on the money the bank has actually paid out to the builder. You start paying the full bond repayment (capital + interest) only once the house is finished.
What deposit do I need to build a house?
Banks are stricter with building loans. Expect to put down 10% to 20% of the total project cost. If you are buying land separately, banks often require a 40% deposit on the land purchase price.
What is a Progress Payment (Draw)?
The bank doesn't give you the full loan at once. They pay the builder in stages (e.g., foundation done, roof on). A bank valuer inspects the site before authorizing each payment to ensure the work exists.
Get a Formal Quote PDF
Need a formal document for your bank application or client? Enter your email to receive a branded PDF breakdown of this calculation including transfer costs and amortization.
- Official Amortization Schedule
- Tax Certificate Format