Question 1

What's a turnkey contract?

Accepted Answer

A fixed-price contract where the builder hands over a finished home — keys included. You pay one lump sum at completion. Banks love them because there's minimal risk on stage progression.

Question 2

What about progress-payment builds?

Accepted Answer

More common for custom builds and section-and-build packages. The bank pays the builder in stages as work is completed (foundation, frame, lock-up, fit-out, completion). We coordinate the drawdowns so there's no awkward gap between you, the builder, and the bank.

Question 3

How does interest work during the build?

Accepted Answer

Most banks charge interest only on the amount drawn so far — so your repayments grow as the build progresses. Once construction finishes (and you have your Code Compliance Certificate) the loan converts to a standard home loan and you start paying principal.

Question 4

Do I need a 20% deposit?

Accepted Answer

For new builds, you can often borrow more than 80% — Reserve Bank loan-to-value ratio (LVR) rules treat new builds more favourably than existing homes. We'll tell you what's possible for your specific situation.

Question 5

What should I plan for?

Accepted Answer

Cost variations are the main thing. We build a buffer into the loan upfront (most banks require 10%+ contingency). We also help you plan for timing changes, valuation timing at completion, and keeping your fixed-price window on track. We walk through all of this before you sign.

A loan that draws down as the build progresses.

Turnkey or progress payments.

Turnkey

Progress payments

Construction loan questions.

Talk to us before you sign anything.