Buying guide
How does finance work when building a new home
Finance when building a new home can be complex - here’s everything you need to know.
AI summary
Financing a new home build involves a construction loan, which differs from a standard mortgage. Funds are released in stages via progressive drawdowns to pay builders, and you typically make interest-only payments during construction.
To manage your project, it's vital to have a contingency fund of at least 15% for cost overruns. Have a lawyer review your building contract and arrange contract works insurance before starting. Choosing an experienced, reputable builder is also key to a successful build.
How do construction loans work?
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Finance for new builds works a little differently than your average home loan.
Managing costs during a new build
Choosing your builder
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