You have 12 months to complete the building. Construction work must commence within the first 3 months following registration.
Your loan term is limited to 240 months.
You pay interim interest and capital on the Loan until the building is complete. Once it is complete, normal capital and interest payments become payable. If the construction period takes longer than 12 months, interest and capital become payable once the 12 month period allocated to the construction expires (unless you have obtained approval from the bank to extend the building period).
You will be limited to the variable interest rate until the building has been completed.
You can apply for progress payments at any stage during the construction process, provided that sufficient work has been completed and the bank is satisfied with the progress. A maximum of six progress payments will be allowed, based on the work completed.
The application will be assessed on receipt of the necessary documentation in line with the policy and lending criteria of the bank. If for any reason during the period of construction, your credit profile deteriorates, the bank reserves the right to retain the redeemable amount.