Construction Loans - August 7th
If you plan on building your next home instead of buying an existing one, then a regular home loan won’t cut it. You’ll need a construction home loan. Canstar walks you through how to find the lowest rate construction loan available.
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Construction Loans - June 13th
Refinance your existing home loan For those with enough equity built up in their existing home loan, paying for renovations can be as simple as refinancing their existing home loan - although read our refinancing tips first. If...
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Construction Loans - May 29th
For most people, building a brand-new home from scratch means applying for a construction loan. Here are 5 construction loan features to be aware of: 1. Fixed construction periods Most lenders will place restrictions on the...
– Read moreA 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.
