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, where funds are released in stages via progressive drawdowns as work progresses. You typically make interest-only repayments during the build.
It's crucial to budget for overruns with a contingency fund of at least 15% and have a lawyer review your building contract.
Choosing an experienced, registered master builder is essential for a successful project, so check their track record and testimonials before committing.
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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