Our construction loans are typically sought after by those looking to complete an extensive home extension, or build a home or investment property from scratch.
NSW Mortgage Corp offers construction loans with great flexibility. You can use construction loans to purchase land and construct a house, to refinance an existing loan and construct a house, to finance the construction of a house on existing land or to conduct minor renovations to a new or existing property.
The main difference between a construction loan and a regular home loan is that with a construction loan, funds are disbursed on 5 installments, allowing the lender to control the funds, as opposed to having all of the funds upfront and making repayments on the portion of funds that are yet to be used.
We have helped thousands of Aussies with their building and construction projects. Our flexible construction loans allow you to pay the builder of your choice as, and when each stage of the construction process is completed. This way, you can enjoy the benefits of an interest-only construction loan that won’t charge you on the loan amount that is yet to be withdrawn. The builder simply sends an invoice to your lender at the completion of each stage; your lender then pays the builder and sends you a monthly request to pay the interest on the amount paid out.
There are five major stages of a construction project – once they are complete, you can either switch to a ‘principal and interest’ loan or if it’s an investment property, you may wish to utilise negative gearing with an interest-only loan.