Interest During Construction Calculator
During construction, you pay interest only on funds already drawn — not the full loan. This calculator shows stage-by-stage interest costs using the HIA standard drawdown schedule (12% / 17% / 25% / 23% / 23%).
Build Details
$500,000
6.50%
The 5-stage progress payment schedule
Australian construction loans are disbursed in stages tied to building milestones. The Housing Industry Association (HIA) standard schedule is used by most lenders:
| Stage | Milestone | Draw % |
|---|---|---|
| 1 — Slab/Base | Foundation complete | 12% |
| 2 — Frame | Frame erected, roof on | 17% |
| 3 — Lock-Up | Walls, windows, external doors | 25% |
| 4 — Fixing | Internal fit-out, cabinets, tiling | 23% |
| 5 — Completion | Final inspection, handover | 23% |
Some lenders use a deposit draw (5%) at contract signing. Where present, this draws before Stage 1. Individual builder contracts may vary from the HIA standard.
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General advice only. Drawdown percentages are HIA standard — your builder's contract may differ. Interest rates shown are indicative. Verify with your lender.