Building or buying a new home,
without the guesswork.
Buying land, building from scratch, or buying a brand-new home all work differently, and so does the lending. Here's how it fits together, so you can work out what's right for you.
Three ways into a new build
Most people building take one of these three paths. Each one changes how much deposit you need and how the money comes out.
Buy the land first
You buy a section, then build on it. Bare land on its own usually needs a bigger deposit than a finished home, and if you're not planning to build within about 12 months, some banks will only lend around half the land's value. Timing matters here.
Buy land and build
The hands-on route: you buy a section and engage your own builder. The land sits on an interest-only loan, and the build is paid out in stages as it's completed, staying on a floating rate until it's done. Your deposit is worked out on the whole project, land plus build.
Buy a turnkey home
A developer builds the home and you buy it finished. You pay a deposit up front and nothing more until it's complete and signed off, then your loan draws down in one go. The simplest path, and often the one with the lowest deposit.
New builds can need a smaller deposit
Because a new build adds to the country's housing supply, it's treated differently from an existing home and sits outside the usual deposit restrictions. That means you can often get in with a smaller deposit than you'd expect.
The First Home Loan can be used for new builds, including building from scratch, if you meet the income caps and a few conditions. See how the 5% deposit First Home Loan works.
Bank deals change. We keep across them.
Banks regularly run specials for new builds: rate discounts, cashbacks, top-ups for energy-efficient features. They come and go, and the best one depends on your situation and which bank you fit. Part of our job is knowing what's live right now and matching you to it, so you're not chasing an offer that's already expired.
Is building right for you?
Building your own home is a brilliant outcome, but it isn't always the simplest path, and it's worth being honest about why.
While you build, you're often carrying a loan on the land, watching costs add up, and you still need somewhere to live in the meantime. Costs can stretch if you're not clear on what's covered, what isn't, and what to set aside for the unexpected.
For some people, that's an exciting challenge worth taking on. For others, buying a finished or existing home is the smarter move for now, and you build later with equity behind you. Both are completely valid. We'll talk it through honestly and help you pick the path that fits your life right now.
Relocatables, kitsets & tiny homes
These are getting more popular, but the lending is trickier. As a rule, banks won't lend against the home itself until it's on site, fixed to its foundations, connected to services, and signed off by council. Until then you're usually only borrowing against the land. A few banks have dedicated pathways for prefab and relocatable homes, but they tend to be limited to approved suppliers. If this is your plan, talk to us early, before you fall for a design you can't finance.
Common questions
How do I even get started?
Honestly, with a conversation. Before you fall in love with a section or a house-and-land package, it's worth knowing what you can borrow and which path suits you, so you don't waste time on something that won't get funded. And our advice is free, start to finish, because the lender pays us, not you.
How much deposit do I need to build?
For a finished new build, often around 10%, and as little as 5% if you qualify for the First Home Loan. Bare land on its own usually needs more. The exact number depends on the bank and your situation, which is what we sort out for you.
Can I use the First Home Loan to build?
Yes. The 5% deposit First Home Loan can be used for new builds, including building from scratch, as long as you meet the income caps and the build is finished within the required timeframe. We'll check whether you qualify.
What's the difference between turnkey and building it myself?
Turnkey means a developer builds it and you buy it finished: one deposit, one drawdown at the end. Building it yourself means buying the land and engaging a builder, with the loan released in stages as the build progresses. Turnkey is simpler; building yourself gives you more control.
Where do I live while my home is being built?
This catches a lot of people out. If you're building from scratch, you'll usually need somewhere to live during the build, on top of the cost of the build itself. It's one of the first things we factor in so it doesn't become a nasty surprise.
What costs catch people out?
The ones that aren't in the build contract: landscaping, driveways, fences, window coverings, and the buffer for when something runs over. Banks actually require a contingency for this, and we'll make sure you've planned for it.
Can I get a mortgage for a relocatable or tiny home?
Sometimes, but it's more restrictive. Most banks won't lend on the home until it's on site, connected and compliant, and a few have specific prefab products tied to approved builders. Talk to us before you commit to anything.
Thinking about building? Let's find your path.
Whether you build from scratch, buy turnkey, or decide an existing home is the smarter first step, we'll help you work out what's right and what you can borrow.
Book your free discovery call