While a standard home loan is suitable for purchasing an existing property, it may not be the ideal
financing solution when it comes to building or construction. Instead, a construction loan is a better
option for those embarking on a new property construction project. However, it's important to note
that building loans require a fixed-price building contract in place with a registered builder.

One of the key advantages of a construction loan is that you can receive progress payments to
access funds as various building stages are completed. Typically, progress payments are set up on an
interest-only basis. Once the project is finished, you can opt to switch to principal and interest
repayments. This means you'll only need to make necessary payments as the project progresses,
helping you manage cash flow throughout the building process.

At Loan Concern, we provide expert guidance on construction finance to help you build your dream
home without breaking the bank.