Printer friendly versionThere are five drawdowns for a Construction Loan. These are generally:
- Slab down - 15% of total construction cost
- Frame up - 25% of total construction cost
- External brick work completed - 20% of construction cost
- Lock up stage - 20% of construction cost
- Practical completion - 20% of total construction cost
An industry standard building contract is required before the first construction drawdown.
Minimum $50,000 to $1 000 000 with maximum loan to security value ratio of 95% for owner occupied and 90% for investors or 50% for acceptable owner builders.
A first registered mortgage on residential property within Australia.
Until construction is complete repayments are interest only after which they may become principal and interest or remain interest only. They can be made fortnightly or monthly from your nominated bank account either by direct debit or direct salary crediting.
The interest only portion is available for up to 5 years.
The total loan may be split between 2 accounts after construction is finished.
This enables identification of personal and investment debt and to vary each split in terms of variable and fixed rate portions - depending on the nominated product after the construction period.
All applications for credit are subject to Mortgage House Of Australia Pty Ltd normal credit approval criteria. Full terms and conditions are set out in the loan contracts. Terms & conditions, including fees & charges may be varied or introduced in the future. Fees & charges are payable.
