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
Building a new home requires a construction loan, where funds are released in stages (progressive drawdowns) to pay builders, often with interest-only repayments during the build.
Managing costs is crucial. Plan for a contingency fund of at least 15% to cover overruns and have a lawyer review your building contract.
Choosing an experienced, registered builder is vital for a smooth process, and you should always arrange contract works insurance before any work begins.
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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