Buying a house before it’s built has a slightly different process to when you physically eye up your new home and purchase it. So how does the finance work?
There are generally two different types of loans, as JB explains in the video below.
As explained above, you can buy a house off-plan where you put down a deposit and pay the rest when it’s completed. That's called Turn Key. In this instance, it’s like buying a completed house where you’re just securing it with the deposit up front, and then paying the fixed price when it’s ready.
The other type of loan is a construction loan. This is where you purchase the land (or you may already own the land), and while the house is being built, there’s a construction contract in place and the funding is paid progressively, usually upon the builder’s invoice.
It’s important to pick the right type of loan that works for you. That’s where we can help – chat to one of our advisers and we can walk you through it. If you're a first home buyer, download a copy of our First Home Buyer's Guide. If you’d like to read up more about new builds, check out our Building New page. There are different types of construction contracts available when building new. Read this document to determine which option is the best for you.
You can also check out the different types of loan agreements: