Construction Loans
A Construction Loan will usually help you purchase land and build a home, or construct a home on land already owned. Construction loans may also be taken out to effect extensive structural renovations on existing properties. The loan is drawn down in instalments to pay the builder, and during construction the repayments are interest only, payable on the amount of loan that has been drawn down. When the construction loan is fully drawn down and the property is complete it usually reverts to a standard loan as agreed with the lender.
More Information or Help
If you would like to talk to us confidentially about construction loans or other home loan options, fill out the form below or call 13 94 62 (or direct on + 61 2 9249 3739).
Advantages and Disadvantages of Construction Loans
| Pros | Cons |
| Construction loans allow you to make payments in stages, thus ensuring you do not pay the builder for work they have not completed. | If you are an owner-builder, you will be required to present detailed costings including quotes and all relevant insurances which may be time consuming |
| You can save on repayments during construction as construction loans allow you to make the minimum repayments until construction or renovation is complete. | As the loan is really just a version of a standard variable loan, your repayments and interest payments will increase with any interest rate rises. |
More information and home loan help
For more information on how and where to find a better home loan deal from an extensive panel of Australian banks and secure mortgage lenders, or to speak to your local area mortgage expert, contact us on 13 94 62 (direct +61 2 9249 3739)
