Construction Loans
If you are building your own home or investment property, a construction loan may be suitable for you. This loan requires a fixed price building contract from a registered builder. These loans are usually interest only for the period of building and then become principal and interest once building is completed or, subject to negotiation, this interest only term can be continued. A construction loan allows you to draw money as is required whilst building. Further, along with the usual necessary documents that are required when applying for a loan, construction loans also require a “fixed-price building contract” and “council approved plans”.
