Construction & Building Loans

Many people want to build their dream home. A construction loan is similar to a standard home loan, but while you’re building there are some important differences. Firstly, funds are released in stages as construction progresses to ensure you’re only paying for work that’s been completed. Secondly, you only pay interest on your loan until you have finished building.

There are typically five stages of construction – the foundation slab, the frame, the lock up when windows, doors, walls and roofing are installed, the fitting when internal fittings such as electrics and plumbing go in, and finally completion. Your builder will issue an invoice at each stage and we will help you to process payments.

During the construction period, it’s common practice for the borrower to cover the interest accrued on the expected final loan amount, before moving to a more traditional principal and interest repayment structure once the property is complete.

If you are looking to build the home of your dreams, chat to our team today and let us help make your dream a reality.

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