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Building or renovating

Building or renovating is a great way to get the house you want. You have the freedom to add quality craftsmanship and the design features that you and your family value. Creative projects are both exciting and stressful – that’s why we’re here to help with the basics like getting the right mortgage and saving money.

Building or carrying out renovations is a great way to get the house you want, giving you the freedom to add quality craftsmanship and design features that you truly value. Creative projects like these are exciting but they can be a bit stressful – so we’re here to help with a home loan option that matches your plans. 

Before you start, check that you have the right features on your home loan.  Our building option, for example, lets you draw down funds progressively as you meet each stage of your building milestones, so you’ll only be charged interest as your build progresses. We can set up and manage progress payments for you, giving you more control of your project.

Home loan options for building and renovating

Depending on how extensive your renovations are, you could consider switching to interest only repayments for a term to free up your cash flow or consider other options such as:

Building option

Our structured, progressive drawdown feature lets you borrow at each construction stage, as the value of your property increases. Available on our Standard Variable Rate Home Loan.

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If you’re ahead on your Bank of Melbourne home loan repayments, or you have spare money in your linked offset account, you could use the funds to self-manage each construction stage.

Manage your home loan

Using your equity to build

You may be able to apply for a top up or a new home loan using the equity in your current home as security. Then self-manage payments at each construction stage using the funds in your variable home loan, or your linked offset account.


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Advantage Package

Package your home loan, credit card and transaction account to get a home loan interest rate discount and fee waivers that could save you thousands1, all for a $395 annual package fee. Unavailable on Basic Home Loans.

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The Detail

Conditions, credit criteria, fees and charges apply. Based on Bank of Melbourne’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change. Before making a decision, it’s best to read the terms and conditions.

Loan Accounts – Charges for specific services and accounts (PDF 33KB)

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.

1Advantage Package: Terms & Conditions (PDF 179KB) apply. A $395 annual package fee applies and is payable from an eligible Bank of Melbourne transaction account. Before deciding to acquire a Bank of Melbourne transaction account, read the terms & conditions, and consider if the product is right for you.