What is a construction loan?
Construction loans are home loans for those looking to build a new home or complete major renovations.
Construction loans are drawn down in periodic progress payments as the home is being built or renovated.
As a guide, there are usually up to five (5) progress payments for a new home at stages including - Slab poured, framework, enclosed structure, fixing/fit out and practical completion (lock up).
During the course of construction, loan repayments are calculated on the advanced portion of the loan amount.
- A new repayment will be calculated each time loan funds are advanced and you will receive a letter advising of the details.
- Interest is only charged on the loan amount advanced.