If you are planning to build your own home, rather than purchase an established property, Construction Loan is a type of Loan you are after. Construction loan differs from a traditional mortgage in that it allows you to pay interest only loan progressively throughout the construction process. As builder moves through each stage of Construction, they will be made progress payments and throughout this period, interest will only be calculated against the amount of money that has been drawn down from the loan amount. Once construction of your home is complete and the final progress payment has been made, you will switch from making interest only repayments to principal and interest repayments.

For more on Construction Loan, please feel free to contact SAI Finance