Construction loans are a great way to finance the build of your new home. Here are some of the benefits of this specific type of loan.
Time to plan.
You have up to 24 months to complete construction after the land has been settled.
Pay less during construction.
A construction loan allows interest only payments for the land prior to construction and interest only payments during the construction process. Be aware that whilst this is a benefit, your loan principle will stay consistent as you are simply paying off the interest component of your loan.
Interest rate discounts.
Upon completion of construction, your construction loan will automatically revert to a standard variable rate home loan, which may mean an interest rate discount.
Construction loans are available to for owners who appoint a registered builder as well as owner-builders.
For more information, contact your bank manager or financial advisor.