Making the decision to build or renovate your own home can be a very exciting time.
When you are constructing a home, you don't require the entire loan all at once - you will most likely need to pay in stages. This is great, because it means that you will only be paying interest on the money that has been drawn down.
The bank usually arrange an inspection at each of the construction stages where payment is required, meaning that you won't pay for work that hasn't been completed.
In order to qualify for a construction loan, there are several requirements that must be met, including:
- The signed building contract with a licensed builder must be for a fixed-price
- Must provide copy of builder's Insurance POlicy
- The building plans must be approved by the appropriate council and stamped
Accession Finance can discuss your loan options and present you with the options we feel would be best for your circumstances. If you are uncertain about the above considerations, we would also suggest that you seek advice.