Construction Loan

A construction loan allows you to draw amounts for each building stage of your property. With other type of home loans, you usually get the borrowed money as a lump sum and immediately have to pay repayments. With a construction loan, you start with interest only repayments during the construction period. When the building is complete, your loan will change to principal and interest repayments.


  • You can make additional payments
  • Interest savings
  • Pay interest only during the construction period


  • Runs on variable interest rate
  • Not flexible, it requires a fixed amount before the construction