Squirrel innovates with construction loans
The adviser group has rolled out Squirrel HomeBuild, a new home loan product aimed at owner-occupiers partnering with builders.
HomeBuild gives builders progress payments to complete construction, but buyers do not have to make payments until the home is finished. The bridge financing provides builders with easier financing, while giving buyers breathing room to pay rent and other costs while they get ready to move into their home.
Under HomeBuild, interest is capitalised and once the home is ready, buyers pay land cost, building cost, and interest in their loan repayments.
Squirrel launched the product last Tuesday, and the firm is working with two lenders. Squirrel's Peter Norris said he expects to see more innovative financing structures in the market, as first home buyers and owner-occupiers grapple with rising prices.
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