Construction Loans
What's a construction loan?
A construction loan is a loan designed specifically for those who build a home, can also be used for renovations
Construction loans offer progressive drawdown, paying the builder for completing predetermined stages in the build
Most construction loans are interest-only repayments for the duration of the build, interest-only repayments will keep costs to a minimum
Once the construction is finished the loan reverts to a principal and interest loan
Advantages of a construction loan
- Financial protection by making progress payments, rather than paying a lump sum upfront
- Reduced interest by only paying for the amount that as been drawn down
- Generally additional repayments are allowed during the build
Disadvantages of a construction loan
- Typically a bigger deposit is required, just make sure you have extra funds available to cover any additional costs
- Works carried out may need to be assessed between progress payments to release funds
- Construction loans often attract higher interest rates, so its important to do your research
- A construction loan could be more complex than a regular loan, with extra paperwork required from the builder
Construction Loans have Interest Only payments during the construction period
Meaning your repayments are lower throughout this time
Let's have a chat
I would love to hear from you
Here's how you can reach Glen . . .
By submitting this form I am accepting of the Terms and Conditions & Privacy Policy
I am here to work with you, to get the best outcome
1. Understand your goals
I will listen and take the time to understand your unique position, your needs and requirements in a loan
2. Provide you with options
I will research lenders comparing only suitable loan options to your circumstances and best interests
3. I am working for you
After you have selected your preferred loan I will do all the groundwork to get it lodged, approved and settled
4. Happy days
I will keep touch in touch and make sure the loan still suits your future circumstance, and try to save you money along the way
Hundred's of loan options in one place
We offer you choice
