Building a new home is one of the biggest milestones you’ll ever reach. But with shifting market dynamics and changing interest rates, a lot of future homeowners are asking the same big questions: Is now actually a good time to build?
To clear up the noise, we sat down with MyChoice Home Loans General Manager John Berghella to break down what’s happening in the market, why waiting might cost you more, and how you can take advantage of the recent game changing “Get Started with 5% Upfront*” offer!
Q: The market has felt a bit unpredictable lately. Is now a good time to start building a new home?
A: Yes. While many people wait on the sidelines hoping for a massive drop in interest rates, history shows us that waiting often backfires. When interest rates do settle or decrease, demand spikes instantly. That means more competition for land, longer builder queues, and inevitably, rising construction costs.
Right now, you have a window of opportunity where builders are actively competing for your business, offering incredible incentives that won’t last forever. By locking in your build contract now, you beat the rush and secure today’s prices.
Q: A lot of people struggle with the upfront costs of building. How does the 5% upfront* offer help?
A: When building a brand-new home, customers would source a construction loan, which is specifically designed to finance the construction period. The builder requires scheduled funds to be paid, known as progress payments, which help to pay off the key stages of the build.
With the 5% upfront* offer available exclusively to builders within the NEX Building Group, there is no interest, no repayments and no surprises. You simply need 5%* to get your contract signed and your build price locked in. It’s designed to keep your money in your bank account longer, giving you extra savings and peace of mind.
Q: How does MyChoice Home Loans make the construction lending process different?
A: John states, “a construction loan is a specialised home loan designed for people who are building a home rather than buying an established property.”
With a standard home loan, you receive the entire loan amount in a lump sum at settlement. With a construction loan, the lender holds onto the total funds and releases them in multiple amounts to your builder as different milestones of the build are completed.
John continues, “at MyChoice Home Loans we’re construction loan specialists, and work directly with you and your builder. We understand their timelines, their processes, and exactly what paperwork the banks need upfront to secure your loan as well as what is required at every single milestone through the build. This inside knowledge eliminates the typical red tape, avoids construction delays, and ensures your new home build moves forward smoothly and without unnecessary stress”.
Q: What are progress payments and how do they work?
A: Progress payments are timed to ensure the builder is paid, based on the percentage of construction that’s been completed. The home builder works with the bank to ‘draw down’ these payments so the construction can continue to the next important stage.
Typically, a residential build is broken down into six key stages:
Stage | What Happens | What You Pay For |
Deposit |
| 5% secures the contract and starts |
1. Slab | Foundations are poured. | 15% Ground preparation, plumping |
2. Frame | The skeleton of the house goes up. | 20% Steel framing, truss installation, and roofing skeleton. |
3. Lockup | The home is sealed from the elements. | 30% External walls, windows and doors |
4. Fit-out | Inside starts looking like a home. | 20% |
5. Completion | Final touches. | 10% Painting, tiling, electrical fitout and |
Q: What is the biggest risk of waiting until next year or further into the future to build?
A: The biggest risk is the “cost of waiting”. Land value and building material costs rarely go backwards. For example, if construction costs were to rise by 5% over the next 12 months, a $400,000 build could increase in excess of $20,000.
In addition, you miss out on the current incentives being offered by the NEX Building Group. Unique to anything else in the market right now, an incentive like the 5% upfront* offer is designed for the current market conditions to get people moving. Waiting means you might face higher base prices later without the competitive offers available today.
Q: Which builders do MyChoice Home Loans support?
A: Proudly part of the NEX Building Group, MyChoice Home Loans have direct partnerships with some of Australia’s most trusted and award-winning residential builders.
Because we work side-by-side with these brands every day, our construction loan finance process is incredibly streamlined. We understand their payment milestones, their build timelines, and their contracts inside and out – which means faster approvals and less paperwork for you.
We proudly provide specialised construction lending for:
· McDonald Jones Homes (NSW & ACT)
Q: I’m interested, but I don’t know where to start. What’s the first step?
A: Don’t stress about having everything figured out straight away. The very first step is simply assessing your borrowing power so you can look at home designs with confidence. Our team can sit down with you, look at your current financial situation, and see how you can take advantage of government grants and incentives like the 5% upfront* offer. Because we have access to a wide panel of lenders, brokers and financial institutions, we work hard to find you the specific loan that fits your budget and lifestyle.
Ready to Get Started with 5% upfront?
Don’t let the cost of waiting hold you back from building the home you’ve always wanted. Get in touch with the team at MyChoice Home Loans today, and let’s see how much you can secure to build the home of your dreams.
* Full terms and conditions can be found on participating builder websites.
