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 involves a construction loan, which is different from a standard mortgage. Funds are released in stages via a 'progressive drawdown' to pay suppliers as work is completed, with interest-only repayments often available during the build.
It's crucial to budget for unexpected expenses with a contingency fund of at least 15% of the build cost. Before starting, have a lawyer review the building contract and arrange contract works insurance to protect your investment.
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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