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 build involves a construction loan, which differs from a standard mortgage. Funds are released in stages via a progressive drawdown as work is completed, and you typically make interest-only repayments during this period.
To manage costs, it's crucial to have a contingency fund of at least 15% of the build cost. Also, have a lawyer review your building contract and arrange contract works insurance before starting your project.
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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