Financing an apartment under construction works differently from a loan for a finished home. Instead of releasing the full amount in one go, banks typically tie the disbursement of funds to construction progress.
Understanding this logic helps you plan a realistic payment schedule and shape the conversation with your bank.
The difference between a loan for a finished home and for new construction
For a finished property, a bank disburses the loan in one payment, secured by a mortgage on a completed and registered property. For new construction, the amount is usually released in tranches, each tied to a construction stage or a payment under the preliminary contract.
This difference does not make off-plan financing more complicated — it simply requires more coordination between the builder's schedule, your preliminary contract and the bank's internal procedures.
What a bank looks at for an apartment under construction
Beyond the usual assessment of the buyer's creditworthiness, the bank also examines the project itself: who the developer is, what stage construction is at, whether it matches the approved documentation, and what the projected completion date is.
A clear preliminary contract with precisely described payment stages makes this easier, because it gives the bank a concrete basis for structuring the loan disbursement.
The role of Act 14, Act 15 and Act 16 in disbursement
The construction stages confirmed by Act 14, Act 15 and Act 16 often serve as objective checkpoints for the bank — proof that construction has genuinely reached the point it claims to have reached.
The final tranche is usually tied to a stage close to completion and to the issuing of the permit for use, since that permit is a precondition for a full mortgage on the finished property.
Why a clear developer and contract help with approval
Banks value transparency. A developer with a clear track record, publicly available information about previous projects and a well-structured contract makes the approval process smoother and reduces uncertainty for everyone involved.
Conversely, unclear or incomplete project documentation can slow down the loan review or trigger additional requirements from the bank.
How to approach the conversation with your bank
Prepare the preliminary contract, the available project documentation and information about the developer before your first meeting with the bank. That way the conversation starts from concrete facts rather than general questions.
This article explains the general logic of financing new construction and does not replace individual advice. Terms, rates and borrower requirements are set individually by each bank — check them directly.
