If you are building from the ground up, then a Construction Loan is the right one for you, with features and benefits specific to the process of construction.
Designed to provide funds at different stages of the build, the idea behind a construction loan is to negate the need of drawing down the whole loan amount at the one time, which would result in you paying interest on money that you are not yet ‘using’.
There are usually 6 stages to the construction of your new home:
With a construction loan, you will only draw the funds from the total loan needed for each of these stages. As one is completed you are then able to access the next portion of the loan and so on. When construction is completed, your loan will convert to a ‘normal’ home loan.
There are varying types of construction loans, each with their own features, and there will be one that is perfect for you. At first glance they can be complicated, and there are lots of requirements and information that your lender will want to see before approving your loan.
Simply Money will help you decide on the right lender, the right loan with the right features so you can settle down to the important and exciting process of creating your own touch of paradise.