Building a home is one of the most exciting milestones in life, but financing it can be far more complex than many people expect. Unlike a traditional mortgage, a construction loan is not released as one lump sum. Instead, lenders disburse the funds in stages—known as progress payments—aligned with the different phases of your build: slab, frame, lock-up, fix, and completion.
While this system protects both borrower and lender, it can also create stress, delays, or unexpected costs if the loan is not structured correctly. Many first-time builders underestimate how important it is to plan ahead and work with a finance professional who understands the process.
How construction loans work
In a typical construction loan:
-
Funds are released in stages as the builder completes each phase.
-
Interest is charged only on the amount drawn down, not the total loan.
-
Valuations may be required at different stages before the next payment is approved.
This means cash flow planning is essential. If the loan is not set up properly, you could face delays waiting for approvals, or worse, be left covering costs out of pocket until the bank releases funds.
Common pitfalls to avoid
-
Not accounting for potential delays or cost overruns.
-
Choosing a loan with limited flexibility on repayment or redraw.
-
Misunderstanding the staged release process, which can disrupt your builder’s timeline.
How SW Global Finance helps
Our role is to simplify the process and protect you from unnecessary stress. We:
-
Structure your construction loan properly from the start.
-
Manage communication with the lender for smooth progress payments.
-
Ensure flexibility in the loan so you can adapt if your project changes.
-
Provide ongoing guidance so you can focus on building, not chasing paperwork.
By partnering with SW Global Finance, you can enjoy the excitement of building your dream home without the financial headaches that often come with it.
Call/WhatsApp: +84 96 275 92 07
Email: support@sw-globalfinance.com.au
Build with confidence. We’ll take care of the finance so you can take care of the dream.