Building & Construction Loans

If you’re building a new home or planning major renovations to your existing home, a construction loan is generally the most appropriate funding option. The major difference between a construction loan and a standard home loan is that in the case of a construction loan the loan is usually drawn down in stages. Payments (or draw downs) coincide with the initial purchase of the land followed by a number of key construction stages.

This type of loan is ideal for building, as you only pay interest on the amounts you have drawn down. Before building starts, you will need to pay a deposit to your builder as well as paying a deposit for the land if you are buying land. As work progresses you will need to make payments to the builder.

Construction loans are generally structured for progress payments to be made to the builder during the various stages of construction.