House and land vs off-the-plan vs new build

Buying a finished new home, signing off-the-plan two years out, or owning the land and contracting a builder. Three very different lending, deposit and risk profiles.

10 min readBy Sarah ChenStage 1 of 6

These three paths look similar from the kitchen showroom. The lending and the risk profile couldn’t be more different.

How they differ

Off-the-plan

Deposit timing10% on signing, balance at completion

Loan typeStandard at completion

Main riskSunset clauses, valuation gap

Land + build

Deposit timingLand deposit, then build progress

Loan typeConstruction loan

Main riskBuilder insolvency, cost overruns

From the rest of the site

NewsConstruction loan progress payments in May 2026: drawdown risk after three rate hikesConstruction loans draw down in stages tied to build milestones. With the cash rate at 4.35 per cent and build costs still climbing, the gap between approval and final drawdown is more expensive than it has been in a decade. What to budget for, and three ways to manage the risk.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Comparison rates are calculated on a secured loan of $150,000 over 25 years for home loans and a loan of $30,000 over 5 years for car and personal loans, unless the lender states another basis. Business loans and equipment finance for a business purpose have no mandatory comparison rate.