What is a building loan?
A building loan is used to finance the construction of a house on vacant land, or to finance renovations on an existing home.
Unlike a home loan; with a building loan the bank pays out the loan in stages, as each stage of the construction process is completed.
When applying for a building loan, ensure that your contractor is a registered member of the NHBRC (National Home Builders Registration Council), and is covered by Contractors All Risk Insurance Cover.
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