What is a construction loan?
A construction loan is used when you’re building a new home or doing major renovations.
Instead of receiving the full loan upfront, the funds are released in stages as the build progresses (progressive drawdowns).
You only pay interest on the amount that has been drawn, so as more funds are released, your loan balance increases and your repayments increase over time.
Terms, conditions, fees, charges and credit criteria apply. This article is intended to provide general information of an educational nature only. Information in this article is current as at the date of publication.