Construction and home loans

There may be some restrictions on your home loan available from the bank. You may not be able to borrow as much as you would normally. In most situations where you’re buying land to build on, your home loan will need to be a construction loan.

A construction loan means you draw down the loan amount gradually as the build progresses. You’ll start paying off the home loan while still living elsewhere, before you move in, so you’ll need to budget for this cost.

When purchasing a new and house and Gateway land package (if the house is already built) you won’t require a construction loan. Instead you’ll take out a loan when the house is ready to move into, and start your repayments then.