Looking to build your dream home? A Construction Loan will provide you with the funds you need to finance construction of any kind, whether you’re planning on knocking down and rebuilding, making structural renovations or repairs to your home. A construction loan is ideal as it allows you to progressively draw funds at various stages of your project, drastically reducing your interest repayments – which is always beneficial. This is known as progressive draw down. As the construction of your dream home progresses so too does the payments made to the builder. Generally, there are five stages at which payments are made:
Therefore, this will not only add to the value of your property but will also increase the equity available.