Halo Construction · Progress-draw build loan

Where it fits

Halo Construction handles transactions that require staged builder payments — H&L packages, KDR, owner-driven builds on existing land. Key difference: interest-only during build + unlimited progress draws at no fee eases cash flow by 30-40% vs. standard loans.

Core policy

Metric	Halo Construction
Max LVR	90% OO / 80% INV
Build window	24 months (6-month extension available)
Progress draws	5 stages: slab / frame / lockup / fixing / completion
Build-phase rate	Interest-only, variable 6.44% p.a.
Post-build rollover	Auto-rolls to Halo Prime or Flex, no new app fee
Draw fee	$0 (repeat builder) / $150 (first-time builder)

Builders must be HIA / MBA members with 2+ years trading.

Sweet-spot scenarios

匿名 Scenario决策时效 · 4d

Profile

H&L Package · PAYG · dual income

Scenario

Melbourne west: $420k land + $385k build, 10% deposit (LVR 90%)

结果

Halo Construction approved, build-phase ~$4,100/mo IO, auto-rolls to Prime 30yr P&I

匿名 Scenario决策时效 · 6d

Profile

KDR · owner-occupier · self-employed

Scenario

Existing property val $1.4M, KDR total $680k, end val $2.1M

结果

Halo Construction + Flex combo — post-build LVR drops to 65%

Broker submission notes

Additional docs (vs. Prime/Flex):

• Fixed-price build contract (HIA / MBA format)
• Builder insurance (warranty + public liability)
• Council-approved plans + permits
• Quantity surveyor report (required > $800k)

Key policies:

• Land must already be settled before construction loan funds
• Progress draws require QS / valuer on-site report — builder invoice alone insufficient
• LVR > 90% triggers LMI (~2.2% of loan)

Relation to other Halo products

• Post-build rollover defaults to Halo Prime / Halo Flex — auto-activated, no re-submission
• SMSF can't use Construction — LRBA rules forbid substantial asset change; SMSF must buy completed residential