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New build mortgages in Australia use construction loans with interest-only drawdowns during the build phase. Stage payments align with construction milestones. The loan converts to P&I on completion.
A construction loan funds a custom build on a vacant lot, with progressive drawdowns at each stage. A house and land package can use a construction loan (for off-the-plan builds) or a standard mortgage (for completed/titled packages). Most house and land packages in new estates use construction loans.
Yes. The First Home Buyer Guarantee (5% deposit, no LMI) applies to both purchasing existing homes and building new homes via a construction loan.
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