Construction Loans
Construction loans are designed for the people who prefer building a house rather than buying an existing one. The process of this type of loan is different from regular home loans.
Advantages Of Construction Loans
Protection
A construction loan offers greater protection for the homeowner. By paying for your home as a series of progressive payments rather than a lump sum in advance, the borrower and lender can ensure that the builder or contractor is only compensated for quality completed work.
Less Interest
A construction loan allows you to pay less interest over time. With this type of financial arrangement, you are only charged interest on the amount of drawn-down capital and not for the fully approved loan amount.
Lower Repayments
A construction loan enables smaller repayments and more efficient money management. This type of finance is interest-only during the construction phase, which can help you increase your cash flow while you are working on the home.
Documents you may need to provide
- Building contract
- Building plan
- Quotations
