For COVID-19 info, or to apply for COVID-19 home loan support, see rams.com.au/covid-19-assist. We will contact you as soon as possible.
  • Making repayments on a home loan tailored for construction

    Making repayments on a home loan tailored for construction

    When it comes to a home loan tailored for construction, there are three key differences from a standard home loan in terms of the way your repayments work. Read on to learn more about what they are.    

    You only pay interest on the amount you have drawn down

     While construction is underway, you only pay interest on the amount of the loan you’ve drawn down as your build progresses. So your repayments start small and you’re not paying for things you haven’t actually done. You’ll need to make this interest payment on the first of every month.    

    Progress Payments  

    As your build progresses, and you make Progress Payments to your builder, the amount used (from your total amount borrowed) increases incrementally, and therefore, so will your repayments. This will occur at every stage of the build. A $50 Progress Payment Fee will also apply to each stage.   

    Completion     

     
    Once your build is complete your loan will convert to Principal and Interest repayments, meaning you start paying off the full amount borrowed, instead of just the interest. This means your repayments will increase accordingly. 

    For full details, be sure to check out your Loan Product Terms and Conditions.    

    Select a topic to view more blogs and videos: 

     
     

    About the author

    • Raymond

      Raymond A Ram is the RAMbassador for RAMS Financial Group. Raymond works with the RAMS team to bring simple, helpful and expert information on home loans and savings accounts to life with his down to earth and cheeky personality. He enjoys seeing everyday Australians turn their dreams of saving for a goal or getting into a home a reality. 

      Growing up in Goulburn, NSW, Raymond was brought up with good old-fashioned Aussie values of hard work and a fair go. It soon became apparent that Raymond wasn't content for the conventional path of grazing, producing the very best wool, and finding a nice sheep to settle down with. So it wasn't long before his passion for performing and his talent as a likeable larrikin shone through - landing him a few roles such as 'RAMlet'. He was even tipped to play RAM-bo at one point but chose to become star of the small screen instead as RAMbassador for RAMS. He now finds this role so much more rewarding.

      Contact your local RAMS Home Loan Centre about your home loan options.

      Raymond A Ram

  • Check out our latest offers

    Find your local RAMS Home Loan Centre

  • Disclaimer:

    This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.