Hi. We are currently building with Henley and our loan has been approved. Apparently, with construction loan, the first year is interest only payments but my lender said we can switch this to int + principal payments once the loan has been fully drawn.
During interest only period, do I get charged interest on the OWING balance only or the TOTAL LOAN amount?
Does it help if we make extra repayments while our loan is still under interest only period? Is it worth it, do we actually save in terms of interest charged on the loan?
Thanks in advance.