If you’re considering renovating your existing home, or wanting to buy land and build your dream home, then take advantage of a construction loan. A construction loan allows you to only pay the interest on the loan amount used whilst you are building in order to minimise your monthly outlay.
As each of the pre-arranged building stages nears completion, an inspection will be arranged and the lender will make payments direct to the builder. This will assist in ensuring prompt payment and completion of your house. During the construction you must have a variable rate loan, however once your property has been fully completed you can either remain with a variable rate or switch to a fixed rate loan and your regular repayments will commence for the full loan amount.