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 is different from a standard mortgage. Funds are released in stages to pay builders as work progresses, known as a progressive drawdown. You typically make interest-only payments during construction.
To manage finances effectively, it's vital to have a contingency fund of at least 15% for unexpected cost overruns. Always have a lawyer review your building contract and be prepared for potential delays that could extend your costs.
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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