How an HSBC Premier Construction Home Loan works
How much to borrow?
Building a house is a very time-consuming and often stressful event in your life. Make sure your HSBC Premier Construction Home Loan allows for all of these finishing touches, and ensure there is enough money available for the unexpected and for any finishing details.
In order to help determine the amount you can borrow, you will first need to have a valuation done. This will show how much your new home will be worth once it’s completed.
During the build
The construction process is usually broken down into four stages. At the end of each stage, a valuer will conduct an inspection and, providing satisfactory progress has been made and all conditions have been met, HSBC will release funds progressively to meet the building costs involved.
During this period, you will only pay interest on the value of the loan drawn down. This will help minimise your costs while the build is in progress.
Upon completion of the construction, the final payment is made. Your loan will then convert to a standard home loan.
To make sure your home loan is structured in a way that suits your individual needs, we recommend you speak to a Premier relationship manager.
- An HSBC Premier Construction Home Loan is only available for residential properties
- While your home is being built, your home loan will be an interest-only Floating Rate Home Loan. This means that the interest rate may vary. This also means that the amount you need to repay on a monthly basis can rise or fall