Construction home loans can be flexible, with funds only being drawn down as your builder completes various stages of your home. Money is paid progressively at key points, e.g. initial flooring, putting up the framework, house lock-up stage and then on completion. This progressive draw down means you only pay interest on the money you are using for any particular stage.
There are a few things to consider – You’ll need:
• A ’fixed price contract’ from a licensed builder,
• Council approved plans and specifications and
• Insurance (normally provided by the builder).