Construction Loan

June 23, 2015

A lot of our clients chose to purchase a block of land and build their dream home, as opposed to purchasing an established property.

This way, our clients get the exact home that they want.

Construction loans are more involved than loans to purchase established homes, but let Better Choice take the hassle out of it for you.

More often than not, initially you will have two loans, i.e. one loan for the land and one loan to construct the home. 

On completion of the home, if you desire, the two loans can be consolidated into one loan. During the construction phase, the lender will control the release of funds to the builder. That is, at each stage, (usually 4-5) when the builder requires payment, the invoice will be sent to the bank for payment. The bank will seek the borrowers authorisation before payment.

As the construction loan is drawn down in stages, you, the borrower, only pay interest on what is outstanding.

In the main, construction loans are only available on a variable rate.

Better Choice Mortgage Services is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this website. While the information contained within this website is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. Although the Better Choice Mortgage Services website may include links providing direct access to other internet resources, including websites, Better Choice Mortgage Services is not responsible for the accuracy or content of information contained in these websites. Links from Better Choice Mortgage Services to third-party sites do not constitute an endorsement by Better Choice Mortgage Services of the parties or their products and services. The appearance on the website of advertisements and product or service information does not constitute an endorsement by Better Choice Mortgage Services, and Better Choice Mortgage Services has not investigated the claims made by any advertiser. Product information is based solely on material received from suppliers. Advanced Finance (Pty) Ltd t/a Better Choice Mortgage Services are not financial planners or accountants and we would encourage our clients to seek professional advice before acting on any a financial or taxation information in this news post.

Contact Us

1300 805 221

Better Choice