Construction loans made easy
A construction loan is specifically designed for:
- Owner Builder Projects
- Fixed-Price Construction Projects
- Major Renovations or Extensions
What is a construction loan?
Construction loans are not set up in the same way as traditional home loans in so far as the lender considers the total amount you need pay for the construction loan then breaks down the full amount into separate payments called progress draws. Most lenders will require works to be completed for each stage before any progress payments are made. Whilst progress draws are being made, the majority of lenders may only expect you to pay the interest due on the amount that has been drawn hence providing potential cash flow benefits to you. After completion the loan generally reverts to a standard Principal & Interest repayment loan. Once the construction loan draws down completely you then have the option of choosing between different loan types, including Fixed Rate loans.
It’s vital to know what finance options are available to you prior to undertaking any building or renovating project. Talk to our construction loan experts today and we will find the construction loan that best suits your needs.
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