Finance FAQs

Frequently asked questions


What are the monthly repayments on a new home?

It depends on the type of loan you choose and the cost of the property itself. If you’re financing your home with a Guarantor or Low Deposit Loan for example, your bank of choice will outline the monthly repayments you need to make when you sign on the dotted line.

With a construction loan, you’ll pay the smallest amount possible while your home is built. This will save you thousands while you build and lift a whole lot of financial pressure off yourself.

We’ll issue construction repayments at five key stages:

  1. Slab down (when the foundation is ready to go)
  2. Plate height (when the brick work is done)
  3. Roof cover (when the roof over your future head is up)
  4. Lock up (when the doors, windows, etc., are in and we can effectively ‘lock up’ the house)
  5. Practical Completion (when the house is fit for occupation, just before you receive your keys)

It means your monthly repayments will gradually increase over the course of the build until the home is ready, and only then will you start paying your monthly repayments in full.

The exact amount you’ll pay will depend on a few factors, including:

  • Your loan value (how much you’re borrowing)
  • Your loan type
    • Is it fixed or variable?
    • Are you paying principle and interest, or interest only?
  • The length of your loan term (i.e., 25 years)
  • Your interest rate, and
  • Your repayment frequency (i.e., fortnightly vs monthly)

So, it’s not always clear cut, and rarely the same from one person to another. However, it is very possible your repayments will be equal to, or less than, what you’re currently paying in rent.

Not sure where to start? Our finance brokers can help you break down what your future weekly repayments would be throughout construction to ensure you’re comfortable and able to afford them.

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