Buying off-the-plan comes with a slightly different financial rhythm than buying an established home. There's more time. More stages. And, if you plan well, a lot more breathing room.
Whether you're a first home buyer building your deposit, a downsizer selling the family home, an investor thinking long term, or a young family planning ahead - understanding how the money side works will make the entire experience feel calmer and more in control.
Here's what the journey usually looks like.
Step 1: Know your real budget (not just the bank's number)
Before you fall in love with a floor plan, it's worth getting clear on what feels comfortable for you.
Yes, a lender can tell you how much you can borrow. But your personal comfort zone matters just as much.
Ask yourself:
For first home buyers, this is often about finding a starting point that doesn't stretch you too thin.
For downsizers, it might be about reducing debt altogether.
For investors, it's about balancing yield, tax strategy and cash flow.
Tip: A mortgage broker can help you model different scenarios: including "what if" interest rate changes, so there are no surprises later.
Could you still live comfortably in your new off-the-plan home if your interest rate shifted? Seek advice from a good mortgage broker for assistance.
Step 2: Get pre-approval (even if settlement is a while away)
Pre-approval gives you clarity early.
It tells you:
Just remember: most pre-approvals last 3-6 months. If your development settles in 18 months, you'll refresh this closer to completion.
Think of pre-approval as a temperature check - not the final step.
Step 3: Pay the deposit
When you sign the contract, you'll usually pay a 5-10% deposit.
This is one of the major advantages of buying off-the-plan - you secure the property now, but you don't need the full amount straight away.
For:
The deposit is typically held in a trust account until settlement.
Step 4: Understand the full cost (not just the purchase price)
The property price isn't the only number to plan for.
Depending on your situation, you may also need to budget for:
Tip: A good broker or conveyancer can give you a full cost breakdown specific to your state and circumstances.
Step 5: Use the construction period wisely
This is the part that makes off-the-plan different.
You typically have 12-24 months before settlement. That's not "waiting time" - it's preparation time.
You can use this period to:
Life changes during this window too - marriages, babies, relocations, career shifts. The extended timeline gives you flexibility to adjust.
A lot can happen in 1-2 years - use this extended settlement time to adjust to life's many milestones.
Step 6: Formal loan approval before settlement
As construction nears completion, you'll receive notice of settlement - usually 6-12 weeks out.
This is when you:
This is also when your lender assesses the completed property value. In stable markets, this is usually straightforward - but it's wise to stay financially steady between contract signing and settlement (no surprise car loans or maxed-out credit cards).
Step 7: Settlement & beyond
Once settlement occurs:
For owner-occupiers, it's move-in day.
For investors, it's leasing time.
For downsizers, it's the start of a lower-maintenance chapter.
But finance doesn't stop at settlement.
Review your loan every 12-18 months.
Check if refinancing makes sense.
Reassess your goals as life evolves.
How finance looks for different buyers
Because not everyone is buying for the same reason.
First Home Buyers
Downsizers/Rightsizers
Investors
Young Families
The finance roadmap is similar - but the destination looks different for everyone.
Final thought
Off-the-plan finance isn't complicated, it's just staged. And when you understand the rhythm - deposit now, prepare during construction, settle later - it can actually feel more manageable than a rushed 30-day settlement on an established home.
The key isn't stretching yourself to the maximum. It's setting yourself up for a home that feels exciting and sustainable.
Because the best purchase isn't just the one you can afford today - it's the one you can live with comfortably tomorrow.
For more off-the-plan buying guides, click here.
