Construction Loans - The Five Stages
When building a new home, you will not need the entire amount of the loan drawndown all at once. If you did this, you would be making interest repayments on the entire amount right from the start and not just on the amount needed at the time. Construction of a dwelling is generally divided into five stages.
These are as follows: Purchase of the land, The pad (floor – also known as ‘bearers and joists’ for wooden floors), Roof (usually including frames), Lock up and Final.