Fixed Rate Construction Loans: Lock In Your Interest Rate

Every lender in Australia offers fixed rate loans but only a few allow you to fix when building your home.

This is because fixed rate loans are more complex for banks to fund so they don’t allow you to draw down the loan in progress payments.

Some lenders have different sources of funding and are willing to offer fixed rate construction loans.

What features are available?

Construction loans with a fixed rate can still come with some of the benefits of traditional fixed rate loans.

  • Rate lock: Lock in your rate at the time of application to protect yourself from rate movements before council approves your plans and construction commences.
  • Progress payments: The loan can be drawn down in stages to match the required payments to your builder.
  • Progress inspections: Some lenders will send a valuer to assess the building during construction before releasing progress payments.
  • Fixed terms: 3 or 5 year fixed rate terms are available. Longer terms may be available on a case by case basis.
  • Interest only: Repayments can be minimised during construction and converted to principal and interest repayments for the remainder of the loan term.

In all cases, you must be using a licensed builder, your building must be approved by council and the lender must obtain a satisfactory on completion valuation.

Give us a call on 1300 889 743 or enquire online and one of our mortgage brokers will let you know which banks can help.

How much can I borrow?

  • First home buyer / Home loans: 95% of the land value plus the cost of construction.
  • Investor / Investment loans: 95% of the land value plus the cost of construction.
  • Renovation loans: 95% of the current house value plus demolition costs plus the cost of construction.
  • Discounts: Competitive professional package and basic loan discounts are available.

What if my bank doesn’t allow fixed building loans?

You can choose to build using a variable rate loan and then when construction is complete you can lodge a variation request to fix your interest rate.

The problem with this approach is that if interest rates change while you are building then you will need to accept the new rate.

The other option is to apply with another bank that does allow you to fix the rate during construction.

Talk to a construction loan specialist

Please call us on 1300 889 743 or enquire online to talk to a specialist mortgage broker who knows which lenders offer construction loans with fixed rates and to discuss which fixed term is more appropriate for you.

Why use us?

We aim to set an example by delivering what we promise: a higher level of service, better advice and better home loans.


Australia-wide services

We finance properties anywhere in Australia for people anywhere in the world.


Get incredible interest rates

Our relationships with our panel of lenders allow us to negotiate your interest rate.


We get tough loans approved

We can help you navigate the often complex pre-approval and application process.


Our customers love us

We receive hundreds of love letters from our customers.

Discover more reasons to use Home Loan Experts

How we find you the right solution

We get a complete understanding of where you’re at and what your ultimate goals are.
You’ll get a recommendation in just a few simple steps.


Complete our free assessment form or call us.


We assess your situation.


We look at all the options from our panel of lenders.


We will find you the most suitable home loan deals.

Testimonials for Home loan experts

about us


lenders on
our panel


lent Australia-wide
and counting


of our borrowers get
approved with a major bank


of our borrowers get a discount
below the bank standard variable rate