Home Construction Loan

construction home loan is a type of home loan designed for people who are building a home as opposed to buying an established property. A construction loan will usually be interest only over the first 12 months and then revert to a standard Home Loan with principal and interest repayments.

In other words, under a construction loan, you borrow money to pay for the cost of building your home and then once the house is complete and you move in, the loan is converted to a permanent mortgage. At that time, you can opt for a fixed-rate or variable-rate mortgage.

During the constructionyou only make interest payments on the amounts drawn down from the construction loan limit.

Repayment of the original loan balance only begins once the home is completed. These loan payments are treated just like the payments for a standard mortgage plan, with monthly payments based on an amortization schedule.

Teo Torrelli, Director of MKS Lending Group has been arranging Construction Home Loans since 1985. He will take the stress out of your home build and work with the bank to ensure the finance is delivered on time.

Contact Teo: 0419 512 833 or teo@mkslending.com.au