Well, technically your first payment is at sign up when you put your deposit down to build.
All builders request a similar amount deposit – usually a couple of grand – all of which goes towards getting your home through preconstruction and ready for site. Think: working drawings, contracts, prestart, personalised portal, interior design consultation, etc. As such, they’re non-refundable.
After your deposit, you won’t be required to make another home loan payment till your build is underway. Progress payments are due within 10 working days and are issued at five key stages:
- Slab down (when the foundation is ready to go)
- Plate height (when the brick work is done)
- Roof cover (when the roof over your future head is up)
- Lock up (when the doors, windows, etc., are in and we can effectively ‘lock up’ the house)
- Practical Completion (when the house is fit for occupation)
Like most builders, we use HIA Contracts which stipulate when Variations are payable:
- Variations less than $10,000 – 100% paid at Practical Completion
- Variations more than $10,000– 50% paid at plate height and 50% at lock up.
However, as always, we recommend checking with your bank or broker regarding variation payments as the conditions can differ based on your loan.
