Construction & Investment Loans
What are Construction & Investment Loans?
Construction and investment loans are taken out for the purpose of creating or expanding a structure. This for example, would include any renovations you may make on your home. Most often these will be secured loans as you have property on the which the new or existing structure will lie.
Why have Construction & Investment Loans?
With a construction or investment loan, you can break up the drawdown of the loan into several progressive draws in line the with construction phases. As one phase of the construction is completed you can then draw down the next part of the loan. By doing this, the interest rate is calculated on that amount which has been drawn down so that you are only making repayments on the portion of you have used.