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New Build Series - Part 2: Types of builds

New builds have a slightly different process to fund versus existing properties when it comes to arranging lending. The method in which you plan to build your home will determine the way your lending works and each method requires a different set of criteria.

We have a whole blog series on funding builds which you should check out. There’s a quick summary on each type of build below and heaps more information on each type of build, just click the heading of the type of build to go to check out some more info on each. 

Turn Key

  • Fixed price
  • Usually pay deposit up front before the build and the rest on completion of the build
  • No interest on loan until settlement (good for those still renting or with another mortgage to pay)
  • Purchase the house and land as one and take possession when it’s built
  • A fairly straightforward transaction - similar to purchasing an existing home

House and Land Packages

  • Generally the house plans are less customisable
  • Usually a fixed price for the full package
  • Often settle on the land first and make progress payments to builder as the house is built

Fixed Price Contracts

  • Purchase a section or subdivide an existing section - Lifestyle, new subs purchased directly off the developer
  • Engage a builder
  • Loan is drawn down in stages as progress payments are made to builder
  • More opportunity to design the house the way you want than a House & Land Package


  • You buy a home off the plans and then you manage the build - you arrange all contractors.
  • Only what you need to build that house will be supplied, so it can sometimes be cost effective
  • Need to have some experience in building or project management
  • If you have existing land most banks can lend up to 80% of the value to fund the build or get it started

Self Managed Builds

  • Self managed builds are similar to kitset homes in that the build is managed by the homeowner
  • Can potentially save some money but need to have experience in construction or you risk going over budget
  • Banks will lend for this but you typically need a higher deposit (40%+) and have experience in the industry
  • Need to have some experience in building or project management
  • If you have existing land most banks can lend up to 80% of the value of that land to fund the build or get it started

Transportable, Relocatable & Tiny Homes

  • Transportable or relocatable homes are built off-site and delivered to final site and then connected to services such as power & water
  • Bank cannot take security over transportable home until it is on site and connected to services so cannot lend on a transportable home in the early stages
  • You may need to be able to fund any progress payments the builder needs before the home is connected to services
  • Tiny homes or anything on wheels cannot generally be used as security, so cannot usually take out a home loan for a tiny home, however you can arrange loans against existing security or land and could use that to fund your tiny home
  • These types of homes are a little more complex to fund but there are still options that can be discussed

More info on all types of construction lending here.


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