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 (progressive drawdowns) to pay builders as work progresses, and you can often make interest-only repayments during construction.
To manage potential cost overruns, it's vital to have a contingency fund of at least 15%. Be prepared for project delays and have a lawyer review your building contract before you begin. Choosing an experienced, registered master builder is also essential.
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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