Life With The Lambies: Funding a Build

A major concern for any new build is how the landowners plan to fund the project.

How are Pat and Kate going to pay for the build of their new home at Seaton? There are a few options that landowners can consider:

  • Cash/Savings – Unfortunately, not an option for the Lambies.


  • Building loan – Applying for a building loan usually requires a building contract (entered into between owner and builder – and the Lambies have not chosen a builder as yet), building plan approval (expected January 2023), a bill of quantities (they should have this shortly), a finishing schedule (this is done)… among other things. Payments are made to the builder in stages, and interest-only payments are made as you draw down on the bond during the build. On completion of the build, this loan then usually converts to a traditional loan where interest AND capital repayments kick in.


  • Refinance – This involves extending an existing loan facility already in place e.g. borrowed RX.00 for a property which is now paid off. The property is revalued at RXX.00. The bank is hopefully happy to lend the new RXX.00 amount now as they have an existing property to use as surety. They will look into serviceability (how much can you afford to repay each month).

The Lambies are going to attempt the “Refinance” option and are hopeful this will be successful. Applying for finance involves a little bit of admin and it takes a fair amount of time. The Lambies will need the extended facility in place by Feb 2023 when they aim to break ground. Safe to say, it’s time to get the ball rolling with their banker…

In a perfect world, the loan extension they are granted through refinancing will marry with the cost to build. However, House Lambies’ building quotes are still pending. We look forward to more updates as they unfold.

Recent News

× How can I help you?