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Latest in Construction Loans

calculate-interest-on-loan

Best Mortgage Rates - July 19th

How to calculate interest on a loan

Understanding how interest is calculated can help you to manage your repayments and potentially save interest on your loan or credit card.

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knock-down-rebuild-costs

Construction Loans - June 30th

How much does it cost to knock down and rebuild a house?

A knock down rebuild can be an opportunity to get into the home you’ve always wanted – here, we break down the costs and things you need to know.

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architect-cost

Construction Loans - August 6th

How much does an architect cost?

Undertaking a renovation, new home or unit development can require a lot of logistics and project management. Setting a budget, arriving at a suitable design, navigating the relevant planning and building regulations, selecting materials, hiring the...

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financing-a-renovation

Construction Loans - July 17th

Financing a Renovation - Loan, Refinance, Redraw or Out of Pocket?

We’ve rounded up some of the finance options that may be suitable for a renovation project depending on your situation and the work you’re planning.

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what-is-a-construction-loan

Construction Loans - June 8th

Building your home? Here’s how a construction loan works

What is a construction home loan? A construction home loan is a type of home loan designed for people who are building a home or doing major renovations, as opposed to buying an established property. It...

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View all in construction loans

What is a Construction Loan?

A construction loan is specific loan that caters for property owners wishing to build or renovate on land they already own. Construction loans are progress based. So, rather than receiving the full loan at once (like with usual home loans), you’ll receive it in steps throughout the stages of construction.

These progress steps are called progress draws. You will only pay interest on the amount you have currently drawn. So, if you have only drawn $200,000 out of a $350,000 loan you will only pay interest on the $200,000. Once your house is complete and all the steps of the draws complete, you will begin paying full principal and interest payments. This saves you money while you build.

 

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