Construction Loan

If you are building a home or investment property, a construction loan may be for you. This loan requires a fixed-price construction contract from a registered developer or builder. These loans typically accrue interest only during the construction period and become principal and interest once construction is complete or depending on negotiations, may continue this period with interest only.

A construction loan allows you to withdraw the funds you need during construction. For a mortgage, in addition to the documents required for a normal loan application, building contract and a plan approved by the building authority are required.