Self-build mortgage: drawdowns and documents

A bank assesses a self-build mortgage based on your ability to repay and the value of the property securing the loan. It may release the money at once or in stages. The NBS sets lending limits; your contract sets the drawdown process.

What the bank assesses

The bank checks your income and existing debts under the DSTI and DTI limits, then values the security for LTV. For an unfinished house, the valuation may consider both the current state and the planned value after completion. The bank decides what share of that value it accepts and when it can be drawn.

Prepare documents for the plot, project and building permit or notification, a budget and evidence of your own funds. The exact list depends on the bank and on whether the mortgage also finances the plot purchase.

Single or staged drawdown

With staged drawdown, the bank releases further funds after you meet the conditions in your contract. It may request a current valuation, photographs, proof that the previous tranche was used or an inspection. Some banks charge interest during construction only on the amount already drawn; repayment of principal starts as stated in the contract.

Rules differ. Fio banka publishes single and staged drawdowns and allows a limited amount of invoice-free construction funding. Slovenská sporiteľňa describes five construction stages. VÚB says a budget, photographs and a declaration can replace invoices for its own-build process. These examples apply to the named banks, not the whole market.

Plot and permits

A bank may finance the plot together with the build or accept it as security. Check legal access, zoning information, utilities and ownership. Some banks explicitly list building plots as a purpose; others only confirm that a plot can be pledged. See mortgages for building plots.

Before you sign

Ask for a written drawdown plan: the number of tranches, first and final drawdown deadlines, documents for each stage, fees and consequences of delay. Ask whether a new inspection or valuation is needed and how much of your own money you must spend before the next tranche. Estimate a payment with the mortgage calculator; the result is not bank approval.