Buying land and building a house

Whether you’re buying off plans or designing the home of your dreams, our home loans and mortgage experts can support you throughout the process.

Contact an expert Borrowing calculator

Flexible borrowing options

Borrow as you go

Draw down your loan in stages (progressive drawdowns) while your house is being built. You’ll pay interest only on what you’ve taken out at the time.

Floating or fixed rate options

Choose to pay the floating interest rate, or fix some or all of what you’ve drawn down.^

Interest-only while you build

To help manage your costs, your payments can be interest-only during the build.^Once your house is complete, you’ll start repaying the principal as well as interest.

What you can borrow for

Turn-key builds

Turn-key (or off plan) means buying a new house at an agreed price with a set date of completion.

House and land

If you’re buying a section and choosing your own builder, you can customise more of your home. These may be fixed price or labour-only contracts, where costs are estimated and charges for materials and supplies are separate.  

Prefabricated houses

Prefabricated houses are built for a fixed price in a factory, then brought to your section (which is usually bought separately).  

Buying a section

If you need to buy land first, we’ll provide you with two loans - one for the land and one for the build. You don’t need to build your house right away - you can start construction later on.

How the build process works

1. Conditional approval

Apply for a conditional approval and find out how much you could borrow. We can provide you with approval for the entire project (including land, if needed). 

2. Buying a section

If you need to buy the land first, we’ll provide you with two loans – one for the land and one for the build. 

2. Construction loan

Once your finance is approved, we’ll provide you with a loan for the build. The first drawdown must be within 90 days of the date of the loan agreement. You’ll need contract works insurance, which gives protection for homeowners undertaking new builds. You have the option of taking this out with IAG.

Work out how much you could borrow to build

How much you might be able to borrow depends on the size of your deposit, your income, and expenses.

Planning renovations?

If you’re building on your current property, a top-up to your existing home loan could be an option.

Contract works insurance

Homeowners undertaking new builds, renovations, or Better Future home loan top-up upgrades will need contract works insurance. You can choose to apply for this with IAG.^ Contact the IAG team on 0800 808 618 and they can get you set up over the phone.