Skip to main contentBuying off the plan means committing to a property before it’s finished, often before construction has started. You exchange contracts and pay a deposit now, then settle the balance once the build is complete, which can be anywhere from several months to a few years later. That long gap is what makes off-the-plan finance its own exercise: the loan isn’t drawn until completion, but the decisions you make at exchange shape whether the finance comes together cleanly at the end.
At Loanworx, we help buyers structure off-the-plan purchases so the finance lines up with settlement rather than catching them out. We look at your deposit, your borrowing capacity and the settlement timeline, plan for the valuation at completion, and match you to a lender comfortable with the development and the timeframe. Whether it’s an apartment, a townhouse or a house-and-land package, we keep the finance side moving toward a clean settlement.
As an experienced finance broker, we work for you rather than for any single lender. That means explaining the off-the-plan risks in plain language, planning for the gap between exchange and settlement, and being ready to lock in finance as completion approaches.
Looking at an off-the-plan apartment, townhouse or house-and-land purchase? Call us on 1300 562 696 or get in touch and we’ll be back to you shortly.
An off-the-plan purchase runs on a different timeline from buying an established home. Here are the three features that shape how the finance needs to be handled.
At exchange you pay a deposit, commonly around 10% of the purchase price, to secure the property. The remaining balance isn’t due until the build is finished and the property is ready to settle. The home loan itself is only drawn at that point, so the finance and the build run on separate clocks.
Settlement can be months or years after exchange, depending on the build. A lot can change in that window: your circumstances, interest rates, lender policy and the property’s value. Planning for that gap at the outset is what separates a smooth off-the-plan settlement from a stressful one.
Because settlement is so far off, you can’t usually lock in unconditional finance at exchange; pre-approvals lapse long before the build is done. The loan is formally assessed and approved as completion approaches, against your circumstances and the property’s value at that time. We plan for this so it’s a step, not a scramble.
The biggest off-the-plan risk isn’t the deposit, it’s settling years later only to find the finance no longer stacks up, whether because your situation changed, rates moved, or the valuation came in below the contract price. The buyers who settle smoothly are the ones who planned for those possibilities before signing.
We work through the timeline, the deposit, the likely valuation outcome and your borrowing position upfront, then stay close as completion nears so the loan is ready when settlement is called. The aim is no surprises at the one point where you can’t walk away cheaply.
An off-the-plan purchase can sit alongside a first home, an investment strategy, or a construction loan. Our other home loan services cover those paths too. Explore the options below to find the right fit for your plans.
Finance for your next move, with the buying and selling coordinated around you.
Finance for building rather than buying established, with funds released in stages as the build progresses.
Borrow inside your self-managed super fund to buy property under a limited recourse borrowing arrangement.
Grants, schemes and low-deposit options that make a first purchase more achievable.
Loans structured around an investment property, your rental income and your wider tax position.
Switch to a sharper rate, unlock equity, consolidate debt or restructure your existing loan.
Off-the-plan finance carries risks an established purchase doesn’t, mostly tied to the time between exchange and settlement. These are the factors that matter most.
The lender values the property close to completion, not at exchange. If the valuation comes in below the price you agreed years earlier, the lender lends against the lower figure, which can leave a shortfall you need to cover.
We plan for this possibility from the start, so a soft valuation is something you’re prepared for rather than blindsided by.
The loan is assessed against your income, expenses and debts at the time of settlement. A change of job, a new loan, a growing family or a shift in lender policy over the intervening years can all affect what you qualify for.
Keeping your finances steady through the gap, and reviewing them with us before completion, protects the settlement.
The exchange deposit can be paid in cash or, in many cases, covered by a deposit bond or bank guarantee that defers the cash outlay until settlement. Lenders and developers vary in what they accept.
We help you weigh a cash deposit against a deposit bond so your funds stay available where you need them most.
Rates and credit policy can shift meaningfully between exchange and settlement. A loan that looked comfortable at exchange is assessed at the rates and rules in force at completion.
We factor a sensible buffer into your planning so a rate move doesn’t undo the purchase at the final step.
Lenders look closely at the development itself: the developer’s track record, the size and type of the project, and the building’s mix of owner-occupiers and investors. High-density towers, small studio apartments and projects with a high investor concentration can attract tighter loan-to-value ratios or a narrower lender panel. The contract terms, including any sunset clause that lets either party exit if the build runs late, also matter. We review these before you sign so you know how the development affects your finance options.
An off-the-plan loan isn’t only about the headline rate. It’s about planning for the gap, being matched to a lender comfortable with the development, and having someone ready to act as completion approaches. Here’s what working with us looks like.
We compare home loans across a broad panel of banks, second-tier lenders and non-bank funders, so you see a genuine spread of options rather than one lender’s offering. We match the purchase to the lender most likely to approve it at a competitive rate, which often isn’t the bank you’d have walked into yourself.
You deal with experienced brokers who shape the application before it’s lodged, not a processing line. We understand off-the-plan timelines, valuation risk, deposit bonds and how lender policy on developments can shift, and we plan for each of them upfront.
Because off-the-plan finance is confirmed close to settlement, timing matters. We stay close to your purchase, review your position before completion is called, and move quickly to lock in the loan when the build is done.
For most home loans, Loanworx is paid an upfront and trail commission by the lender after settlement, and that commission typically does not change the rate or fees you pay. Where a fee for service applies to a more complex scenario, we disclose it in writing before any work begins. No surprises.
You exchange contracts and pay a deposit, commonly around 10%, to secure a property that hasn’t been built or finished yet. The balance is paid at settlement, once construction is complete, which can be months or years later. Your home loan is only drawn at settlement, so although you commit now, the finance is formally arranged closer to completion against your circumstances and the property’s value at that time.
Not in a way that locks in the loan. Pre-approvals are generally valid for a few months, so they lapse well before a long off-the-plan settlement. Instead, the loan is formally assessed and approved as completion approaches. What you can do now is plan the finance properly, understand your borrowing position, and keep your circumstances steady through the gap so the approval comes together cleanly at settlement.
It’s the risk that, when the lender values the property near completion, the valuation comes in below the price you agreed at exchange. Because the lender lends against the lower of the contract price and the valuation, a soft valuation can leave a shortfall you need to cover with extra cash. It’s the single biggest off-the-plan risk, and we plan for it from the start so you’re prepared rather than caught out.
A sunset clause is a date in the contract by which the development must be completed. If the build isn’t finished by then, either party may be able to rescind the contract, with the deposit returned. Sunset clauses protect buyers from indefinite delays, but the rules around how a developer can use them vary by state. We’ll point out the sunset terms in your contract so you understand what they mean before you sign.
Often, yes. A deposit bond (or bank guarantee) can stand in for the cash deposit at exchange, with the actual cash paid at settlement. This keeps your funds available in the meantime, which can be useful over a long off-the-plan timeline. Acceptance depends on the developer and your circumstances. We can help you weigh a deposit bond against a cash deposit and arrange one where it suits.
In some states, yes, and they can be significant because duty may be calculated on the land value or an earlier stage rather than the completed value. Concessions vary by state and change over time, and eligibility often depends on whether you’ll live in the property and your buyer status. We can flag whether a concession is likely to apply to your purchase and recommend you confirm the current rules with your conveyancer or the relevant state revenue office.
Yes, and off-the-plan purchases can sit well with first home buyer grants and concessions, which often favour new properties. The long timeline gives you extra time to save, and some schemes apply specifically to new builds. Eligibility and benefits vary by state and change over time, so we’ll work through what’s available to you and how it interacts with the off-the-plan settlement.
Because the loan is assessed at completion, a change of job, income, debts or family situation in the intervening years can affect what you qualify for. This is why we encourage buyers to keep their finances steady through the gap and to review their position with us before completion is called. If something has changed, knowing early gives the most room to adjust the plan rather than facing it at the settlement table.
Whether it’s an apartment, a townhouse or a house-and-land package, we’ll plan the finance around the settlement timeline, prepare for the valuation, and be ready to lock in your loan when the build is complete.
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