House and land
Separate land and build contracts in new estates such as Box Hill, Marsden Park and Schofields.
Construction loans for building a home.
Building is different from buying an established home. Your loan pays the builder in stages, the lender values the home before it exists, and timing matters. We help you get it right from the first contract.
Who it suits
Knockdown-rebuild
Replacing an older house with a new one on your block.
Granny flats and extensions
Adding a second dwelling or a major extension.
How it works
- We check your borrowing power and how much you need for land, build and costs.
- We review the builder's fixed-price contract, plans and progress payment schedule.
- The lender orders an "as if complete" valuation.
- The loan pays the builder at each stage: slab, frame, lock-up, fixing and completion.
- Once the home is finished, the loan switches to normal repayments.
What lenders look at
- A fixed-price building contract with a licensed builder
- Plans, specifications and council or private certifier approval
- Home Building Compensation Fund insurance for work over $20,000 in NSW
- The progress payment schedule
- A buffer for variations and delays
Good to know
Interest during the build
You usually pay interest only on the amount drawn so far, so repayments rise as the build progresses.
Builder deposits
In NSW the deposit on residential building work over $20,000 is capped at 10%.
Land registration
If your land hasn't registered, approvals can expire. We time the application and keep it current.
Common questions
Can first home buyers get help to build?
Yes. The $10,000 First Home Owner Grant applies to eligible new homes, and the 5% Deposit Scheme can be used for house-and-land or building.
What if the valuation is lower than the contract?
You may need to cover the difference with savings, or choose another lender. We plan for this before you sign.
Can I be an owner-builder?
Some lenders lend to owner-builders, but the rules are much stricter and you can't get builder's warranty insurance. Talk to us first.
Related
General information only, not credit, tax or financial advice. Every lender has its own criteria and approval is never guaranteed.
Talk to us about construction loans.
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