Geelong construction loan
Construction loans stagger payments over each stage of your new home build.
Construction loans give you the flexibility to draw down on the loan in stages, so you can make payments to your builder as needed. If you’re an owner-builder you can pay contractors as your home is being built.
Konnect Financial Services can source construction loans for new home builds and are specialists in assisting owner-builders to find a residential construction loan that makes overseeing the building of their home manageable. Construction home loans are also a great option for buyers of house and land packages.
The difference between a Geelong construction loan and a standard home loan is that instead of a lump sum payment at settlement, the loan is usually drawn down in stages. Payments (or draw downs) coincide with the initial purchase of the land followed by a number of key construction stages.
For example, if you have borrowed $300,000 for a house and land package, but have only drawn down $140,000 to pay for the land, you only pay interest on the $140,000 not the full $300,000. This type of loan is ideal for building, as you only pay interest on the amount you draw down.
For owner-builders, progress payments are usually broken up and paid directly by your bank on the presentation invoices for new works. An alternative loan structure can be used whereby you use a line of credit to fund the construction stages.
To explore your new home construction loan options, contact us to make a time to talk to a home loan specialist from Konnect Financial Services. We can meet during the day or in the evenings at our offices or at your home or workplace.