If you would like to build a new home or renovate your existing home, a construction loan provides you with the funds you need as required.
A standard home loan gives you a lump sum payment whereas a construction loan is usually drawn down in stages, usually in line with a few particular stages of construction. This reduces the loan repayments initially as interest is only paid on the amount outstanding during each stage and if it is gradually drawn down then the loan amount remains lower for a longer period.
