Construction Loans

Overview

A Construction Loan can help you finance building a new property from scratch, building additions to an existing property or making major home improvements.

Key features and benefits

• Terms are available for up to 30 years and the interest rate is variable
• Payments are generally interest-only until construction is completed. This period can last up to one year.

What you should know before you apply

• There is an initial 1% fee on the borrowed amount
• Terms and rates are subject to change without prior notice
• All Bank of Bermuda loans are subject to approval
• Depending on the size of the loan, we may ask you and your contractor to meet with us to discuss terms and conditions
• During the construction, the Bank will visit your site a minimum of three times
• A property valuation will be completed by a qualified appraiser

Documentation required for your application:

In addition to the basic mortgage application and documents, you will need the following documentation for your Construction Loan application:

• A copy of the approved construction plans.
• A detailed estimate of the project from a reputable contractor.
• A copy of a signed contract.
• For projects over $100,000, a copy of the cost estimate report from a quantity surveyor.
•  How to apply