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 installments after a body of construction work is complete (ie, foundations have been laid).
- The Construction loan allows interest only payments for the land portion prior to construction and interest only payments during the construction process
- 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
- Upon completion of construction, your construction loan will automatically revert to a standard variable rate home loan
- Construction loans are available for both registered builders and owner-builders
- You have up to 24 months to complete construction after settlement of land
- The total construction loan may be split between two accounts after construction is complete to identify personal and investment debt made