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.
Related questions
- When was the last repo rate increase in South Africa?
- What is the current repo rate in South Africa?
- What is the current home loan interest rate?
- When was the last repo rate cut in SA?
- What is the current prime interest rate in South Africa?
- Paying the conveyancing attorney. What are conveyancer fees?
