A construction loan is a type of loan for those who plan to build their own home, rather than purchase an established property. There are usually five stages of construction, typically known as slab, frame, lock-up, fixing and completion. As each stage is completed, your builder will issue an invoice. Simply pass the invoice to us and authorize us to make the progress payments from your loan to your builder. Valuations are done at certain stages. As each progress payment is made, you’ll only need to pay the interest on your loan until construction is finished. You start making repayments on both the principal (loan amount) and interest, or you can continue to pay interest only for three or five years – you choose the interest only term when you apply for the loan.