New-build and off-plan lending: progressive payments without the stress

New builds and off-the-plan purchases follow a different lending path to buying an existing home. Funds may be drawn in stages as construction progresses, valuations can work differently, and settlement can be months — or longer — after you go unconditional.

A progressive (draw-down) loan releases money at agreed milestones — typically deposit, foundation, framing, lock-up and completion. Your interest usually only applies to what you've drawn. Turn-key purchases may fund closer to completion. Some lenders also offer new-build rate packages or higher LVRs than for existing stock, subject to policy.

Watch the contract risks: sunset clauses, delay provisions, variation costs, and what happens if the build runs late while your pre-approval expiry approaches. Coordinate early with your solicitor, builder and adviser so peak debt, deposit timing and insurance line up.

Before you sign a build or sale-and-purchase agreement, get lending advice on the structure. We'll help you pre-approve for the right peak amount and set expectations on progressive payments. General information only — every build and lender differs.