Residential construction loans are available to clients wishing to purchase vacant land licensed or knock down and rebuild, builders and owner-builders subject to acceptable LVR’s and servicing criteria.
A construction loan is money you borrow specifically for infrastructure projects, such as a building a new home or unit.
There are four kinds of construction loans, as follows:
- Bridge Loan – if you have an existing house, you can use the equity on it as initial payment for your new house.
- Construction to Permanent Loan – a construction loan and a mortgage loan rolled in one.
- Land Loan – for buying lot only.
- Remodeler’s Loan – for people who would want to revamp their homes.
The main advantage of a construction loan is that the funds are accessed in stages of building, thereby reducing the interest payments made while the house or unit is going through the stages of building.