Construction loans are a little different to regular home loans. You receive the funds progressively rather than all at once like a regular home loan.
Generally, construction occurs via a fixed price contract with the builder you intend to use. The bank pays the builder directly usually through 5-6 progress payments until completion of the construction.
Your loan is gradually increased at each stage of the build. You pay interest only on the portion of the loan that you have drawn down on. When construction is complete your loan usually reverts to a regular principle and interest home loan. This is where your regular repayments begin.
Whether you’re building or renovating your home we assist you during the construction period to ensure a smooth process throughout each stage of your construction.