ING Direct Construction Loan
Posted August 3rd, 2010
and last modified January 31st, 2012
What happens when I click Enquire Now?
- Clicking Enquire Now will take you to the lender's website
- After completing the contact form, a mortgage expert will contact you
- The mortgage expert will ensure you find the right loan, calculate your repayments, and explains all the associated fees
- After going through the enquiry process you will be able to know how much you can borrow, begin your application when you are ready to apply and be approved for a home loan
Building a new home or renovating a home can be very expensive. Some of the costs that can be involved can be the costs for products, labour and transportation of the goods. During this expensive time it is important to reduce the amount of money you will be spending on other things. Many providers will provide you with construction loans that will help you reduce costs while you are building. The ING Direct Construction Loan is one of these construction loans that will reduce the amount you will pay during the construction period. This article will explain what the ING Direct Construction Loan is and what features are offered with the loan.
Features of the ING Direct Construction Loan
The ING Direct Construction Loan will reduce the amount of money you will pay during the construction phase of your home. The features of the ING Direct Construction Loan are:
- What is a construction loan. Construction loans are loans that will help you reduce the amount of money that you will spend during the construction of your home. They are only given to people who are looking to renovate or build a new home and can help you free up money during the expensive construction period.
- How do construction loans work. The main aim of construction loans is to reduce the amount of money that you will have to repay onto the loan during the construction phase. They work by allowing you to borrow money for the construction but allowing you pay back the money later or make reduced payments. The construction loan will often revert to a normal home loan after the construction phase is over.
- Who is suited to the ING direct construction loan. The ING Direct Construction Loan is suited to people who are building a new home or a renovating their current homes. The ING Direct Construction Loans are not offered to anyone else.
- How long can you take to repay the loan. The term of the ING Direct Construction Loan is 2 years or the time it takes to complete the construction. After the construction is over the ING Direct Construction Loan will revert to a Mortgage Simplifier loan.
- Pay only the interest during the construction phase. During the construction period of the ING Direct Construction Loan you will only pay the interest that accumulates on the loan. After the construction is over you will then have to pay the principal and the interest in your repayments.
- Fees. The ING Direct Construction Loan does not require you to pay any fees through the term of the loan. However you will have to pay some application fees that will be associated with most loans. After the loan is transferred to the Mortgage Simplifier loan you may have to pay fees, however you should look at the terms and conditions of that loan to find out how much you will have to pay.
Construction loans are a great way for people to free up the extra money you may need when you are building or renovating. The ING Direct Construction Loan will allow you to pay only the interest that accumulates on the loan during the construction phase. After the construction phase is over or two years has expired then you will have to start paying off the interest and the principal portion of the loan. The loan will revert to a Mortgage simplifier loan during this time.
Read the ING Direct Construction Loan terms and conditions.
| Minimum Loan Amount | $50,000 | |
|---|---|---|
| Maximum Loan Amount | $1,100,000 | |
| Maximum LVR | 95% | |
| Maximum Insured LVR | 95% | |
| Mortgage Offset Account | No | |
| Loan Redraw Facility | No | |
| Split Loan Facility | No | |
| Fixed Interest Option | No |
| Interest Rate Type | Fixed | |
|---|---|---|
| Interest Rate | 6.42% | |
| Comparison Rate | 6.42% | |
| Repayment Type | Interest Only | |
| Repayment Frequency | Weekly | |
| Extra Repayments | No |
| Application Fee | $0 | |
|---|---|---|
| Legal Fee | $220 | |
| Valuation Fee | $0 | |
| Service Fee | $0 | |
| Settlement Fee | $0 | |
| Exit Fee | $250 |
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