Construction Home Loans
A Construction loan uses the funds to build a new dwelling or property and
generally involves draw down payments where you receive the funds in
instalments after a body of construction work is complete (ie, foundations have
been laid).
Advantages
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The Construction loan allows interest only payments for the land portion prior
to construction and interest only payments during the construction process
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The funds will be paid to you in drawdowns ensuring you only pay interest on
the portion of the construction loan you have drawn down
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Upon completion of construction, your construction loan will automatically
revert to a standard variable rate home loan
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Construction loans are available for both registered builders and
owner-builders
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You have up to 24 months to complete construction after settlement of land
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The total construction loan may be split between two accounts after
construction is complete to identify personal and investment debt made.
Disadvantages
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Owner-builders are allowed a maximum 50% Loan to Value Ratio (LVR)
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Funds are released at predetermined stages after proof of work has been
established
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Council approved plans and a fixed price tender is required at time of the
Construction loan application
Construction Home Loans
Mortgage House offers a range of Construction Home Loans. Click on one of our
Construction Home Loans below for further information.
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