Making changes to construction loans 

You or your client will need to notify us of any changes to the building contract or the plans, for example (but not limited to) change in payment schedule, post contract variation and change in plans.  

Any changes will need to be reviewed and approved by our Credit team. We will also need to be notified if there are any extended delays with the construction progress. 

Any changes to the builder on a construction loan will need to be reviewed and approved by our Credit team. To request this change we will need the following documents:  

• The new signed building contract 
• The new progress payment schedule 
• A new valuation. 

Once the new builder has been approved, the new builder’s insurances need to be provided to us.  

Post credit approval and prior to the first progress payment to the new builder, we’ll require the following documents:  

• Homeowner’s warranty insurance, also known as indemnity insurance, provided by the builder, listing the following details: 
  • At least one mortgagor’s full name 
  • Builder’s full name 
  • Site address 
  • Cover amount is greater than or equal to the amount on the building contract. 

• Contract works insurance provided by the builder, listing the following details: 
  • Builder’s full name 
  • Cover amount is greater than or equal to the amount on the building contract 
  • Where the insurance is a specific property cover, the site address is noted 
  • Where the insurance is a blanket/annual policy, the state where dwelling is being built is noted.

• Public liability insurance provided by the builder listing the following details: 
  • Builder’s full name 
  • Minimum amount of insurance is greater than or equal to $2 million 
  • Where the insurance is a specific property cover, the site address is noted 
  • Where the insurance is a blanket/annual policy, the state where dwelling is being built is noted

• Council approved plans – if different to previous plan provided. 

If the council approved construction plans have changed after settlement, new plans will need to be provided to us to review the changes. A new valuation may be required.  

Please notify us as soon as the change has occurred to allow sufficient time for us to review the change before further funds can be released from the construction loan.

If there is a change to the amount (increase or decrease) allocated for the additional work item, the details of the change and supporting documents will need to be emailed to us with the APP number noted in the email subject line.   

Our Credit team will need to review and approve all changes to the additional works schedule. 

Your client is unable to fix their interest rate during the construction phase. Once your client has completed their construction phase, they’ll be able to fix the loan account.  

The cover amounts on the Homeowner’s Warranty Insurance (also known as indemnity insurance) and Contract Works Insurance must be equal to or above the building contract price. If the cover amount is under the building contract price, the insurance will need to be updated.