Project Home Finance

Building a new home with a volume builder is the most common path to a brand-new property in Australia. You select a design, sign a fixed-price contract, and the builder manages the process from slab to handover. The finance side should be just as straightforward, but getting the loan structure right matters: draw conditions, LVR, income requirements, and timing around land settlement all need to align. Settled Funding Group arranges project home finance through bank and non-bank lenders across Australia, and for unique scenarios can introduce you to private finance options.

Who This Is For

• •Buyers purchasing land and building with a volume builder such as Metricon, Rawson, McDonald Jones, or similar
• •Those who have selected a house design from a builder's display range and want matching finance
• •Borrowers buying a house and land package in a new estate
• •Owner-occupiers building their first home with a project builder, including first home buyers
• •Investors building a new dwelling under a fixed-price builder contract for rental income
• •Those looking for a straightforward construction loan where the builder manages the construction process

How Project Home Finance Works

A project home loan is a staged construction facility tied to a fixed-price HIA or MBA contract with a licensed volume builder. Funds are released at each construction milestone: slab, frame, lockup, fixing, and practical completion. The lender lends against the on-completion value of the finished home, and the land is used as security from settlement. Because volume builder contracts are standardised and familiar to lenders, these applications tend to move faster than custom home loans. Joseph Farhat reviews your contract, land position, and income situation, then selects lenders across the 90+ panel that offer the best fit for your scenario.

For a self-employed borrower building a new residential property under a fixed-price contract, alternative documentation can open doors that full-doc requirements would close. See the Blacktown house and granny flat case study for an example of how a $1M construction loan was approved for a self-employed borrower using alt doc, and what the key approval factors were.

What Lenders Assess for Project Home Finance

• •Fixed-price HIA or MBA contract: lenders want a complete contract with a licensed volume builder. Cost items outside the contract, such as site costs or landscaping, need to be accounted for.
• •DA or complying development certificate: most lenders require planning consent before issuing formal approval. Indicative assessments can be provided before the DA is granted.
• •On-completion valuation: the lender lends against the projected value of the finished home. Strong on-completion valuations relative to the build cost create better loan options.
• •Land title or simultaneous settlement: the land must be in the borrower's name or settling at the same time as the construction loan is established.
• •Income and serviceability: assessed against the borrower's ability to service the loan during the construction period and at completion.
• •First home buyer concessions: where applicable, FHOG and stamp duty concessions can affect the loan structure. Joseph Farhat will identify any applicable concessions as part of the initial assessment.

The Project Home Finance Process: What to Expect

1. 1.Initial review: share your builder contract, land details, and income position with Settled Funding Group. Joseph Farhat confirms the loan amount, identifies suitable lenders, and gives you an indicative assessment before anything is formally submitted.
2. 2.Full application prepared and submitted with the HIA contract, land title or contract of sale, and income documentation.
3. 3.Lender commissions an on-completion valuation of the finished home on the land.
4. 4.Formal approval and loan documents issued. Construction can commence once the land settles and the loan is established.
5. 5.Drawdowns released at each build milestone: slab, frame, lockup, fixing, and practical completion. Settled Funding Group coordinates the drawdown process with the lender throughout the build.

Indicative Finance Options

Project Home Finance Broker

Project home finance looks straightforward, but lender appetite still varies widely. Builders, fixed-price contracts, inclusions, and progress schedules are all assessed differently from one lender to the next, and self-employed borrowers often face additional friction on income evidence. A scenario one lender declines is funded comfortably by another. Applying blind means wasted time and unnecessary credit enquiries on lenders who were never the right fit. A broker who knows which lenders suit your builder, your contract, and your income position goes straight to those with appetite, including non-bank and specialist funders most borrowers cannot approach directly.

Settled Funding Group represents you, the borrower, not the lender. Joseph Farhat reviews your builder, your fixed-price contract, and your income position, then matches the scenario to the right lender from our 90+ panel and negotiates terms on your behalf. For unique scenarios, we can introduce you to private finance options. We prepare and manage the application end to end, from assessment through to your first progress drawdown. As a broker, we are typically paid by the lender on settlement, so in most cases there is no direct cost to you. If your income is complex or a bank has already said no, talk to us early and we will tell you honestly what is achievable.