Construction lending usually involves the custom building of a new house, or small-scale housing developments. Construction loans can be taken out by property owners or builders and are typically short-term facilities for the duration of the actual building project.

Depending on lender terms and conditions, repayment flexibility can be a feature and interest only payments may apply while the project is underway. The lender may also impose special conditions and covenants around things like resource consents and environmental aspects etc.

Upon completion of the construction, the finance can generally be either repaid or refinanced to a structured longer-term loan.

Plaxo Financial Advisers have the necessary knowledge and experience to assist applicants with the requirements and obligations usually associated with construction lending.