Finance FAQs

Frequently asked questions

Asset-26

When do I need to start making repayments on my home?

It depends on the type of loan you choose really. With construction loans, as your new home progresses, so do your repayments. They’re called ‘progress payments’ (funny that) and they’re charged as key construction milestones are reached.

The first is due when your slab goes down, approximately one month after your settlement date. When you reach this exciting milestone we’ll issue an invoice, then it’s over to you to take it to your bank and request they meet their end of the bargain and make the payment.

Depending on how your loan is financed, you’ll receive 5-6 progress payments throughout the course of your build. Normally when:

  • The slab goes down
  • The frame goes up
  • The walls, windows and doors are in place
  • The internal and external fittings (i.e., cupboards and appliances) are in
  • And finally, when the keys are ready for handover.

Basically, you lend in stages rather than in one single (expensive) lump, meaning you pay the smallest amount possible while your home is built.

Each invoice is due 10 working days from the date of issue. If you’ve made variations at Prestart or Pre-construction, these will generally be payable at Practical Completion (when building is complete or all but complete, and the house is reasonably fit for occupation).

Please note: Some lenders will require payment for variations prior to releasing the first progress payment as a condition of the loan, so check this with your lender or broker while at that all-important finance stage.

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