If you are looking to build your new home rather than buy an existing property, you need a different type of home loan known as a construction loan. A construction loan can also suit you if you are making major renovations to your existing home or to a property you have bought but which needs a bit (or a lot) of work before you call it home.
Construction Loans Sydney
Advantages:
Competitive variable interest rates.
Facility to draw money when necessary whilst building.
Interest only payments during the building period.
Additional payments can be made.
Disadvantages:
Requires a fixed price building contract leaving little room for change whilst building.
Some lenders charge a fee for every time you draw money whilst building.
Given it is a variable loan; loan repayments will increase if interest rates go up.