There are usually 5 stages of construction:

• Preparation – plans, permits, site levelling, insurance etc.
• Base – when the foundation is laid; concrete slab, footings and base brickwork
• Frame –  installation of your internal and external support structure along with approval
• Lock-up – windows, doors, roofing and insulation are completed
• Fixing – plumbing and electrical is installed. Tiling, cabinets, appliances, bathroom and toilet are all done. Your home’s plastered and painted.
• Completion – all painting, detailing is completed. The sit is tidied and you can move in!

At each stage you will receive an invoice from the builder, which is paid from your loan and are known as progress payments. And you only have to pay interest on the money you use!

When construction is complete you can chose to continue paying interest for three or five years or start making repayments on the principal (loan amount) and interest. This choice is made when you first apply for the construction loan.