ING DIRECT is a division of ING Bank (Australia) Limited | ABN 24 000 893 292 | INGD IM281 01/12Everyday Banking Savings Home Loans

CONSTRUCTION LOANS MADE EASY

The ING DIRECT Construction Loan is ideal for when you’re planning to build a property, purchase land with the intention to build within 12 months, or make improvements to your current home.

Our Construction Loan offers you a competitive interest rate which converts to our Mortgage Simplifier free of charge once construction is complete.

How does it work?

The funds available for construction will be drawn down via progress payments which will be paid directly to your builder.This way you are only charged interest on the funds used, reducing the interest charged.

In the initial stages of construction, you will first be required to contribute your own funds towards the construction cost (unless the total cost of construction is funded by us). The funds in your loan will then be used to complete the project.

Note, if you’re eligible for the First Home Owner Grant, the grant is only accessible once the slab has been completed.

What documents do I need to provide ING DIRECT before progress payments can be made?

Once you’re ready to start building, you need to provide us with the following documents. This will help ensure there is no delay when processing your first progress payment. Copy of your Builder’s insurance policy Copy of your Builder’s licence Copy of your executed Fixed Price HIA/MBA Building Contract, which must include all components of construction Copy of Council approved plans and specifications

What steps do I need to take to request a progress payment?

Before we can make a payment to your builder, you must provide us with: Confirmation that your cash contribution towards the construction costs have been utilised (if applicable) An invoice from your builder, which must be authorised and signed by all borrowers.

Important - Progress payments will be made directly to your builder once you have contributed your funds (if any) to the cost of construction. Payments can take up to 5 business days to process. Please allow more time for progress payments where an inspection is required.

What do I need to do prior to the final payment being made?

Once construction is complete you will need to provide us with a copy of your Council Occupancy Certificate or equivalent and your home building insurance. Once we have a copy of these documents we can arrange a final inspection.

If all items are satisfactory to us, your final payment will be processed and your Construction Loan will automatically switch to our Mortgage Simplifier Loan (with Principal and Interest repayments) at no cost.

Should you wish to switch your loan to another ING DIRECT product and/or repayment type, you will need to complete a Product Switch Form. If we receive the completed form within 7 days of the final progress payment being made we will waive the Product Switch fee, saving you $250! Simply mark Section D ‘Authority to Debit Loan Variation Fees’ with ‘Switch from Construction Loan’.

Where can I send my documents?

All documents can be sent to us via:

Fax: 02 9028 4416 - Attention Construction Team

Mail: ING DIRECT Construction TeamGPO BOX 4094Sydney NSW 2001

Please call 133 464 for enquiries

This information should be used as a guide ony. All applications for credit are subject to ING DIRECT’s credit approval criteria. Fees and charges apply. Details of these and the terms and conditions are available on request.