Construction Loan

If you decide to build your next home then our Construction Loan could suit you.*

How a Construction Loan works

Your construction loan is an interest only Floating Rate Home Loan, which means the interest rate can vary. As a result both the interest rate applied to your loan and the amount you are required to repay on a monthly basis may also rise or fall.

The construction process is usually broken up into four stages. At the end of each stage a valuer conducts an inspection and, providing progress is satisfactory and all other conditions have been met, HSBC releases funds progressively to meet the building costs involved.

On completion of the construction, the final payment is made and your loan converts to a principal and interest table loan.

*Only available for residential properties.