Your off-the-plan finance roadmap

From deposit to settlement: what actually happens, and how to prepare for it.

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 floorplan, 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:

• What repayment feels manageable each month?
• Could we still afford this if interest rates shifted?
• Do we want to keep a savings buffer?
• Are there future expenses on the horizon (school fees, travel, renovations, retirement planning)?

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.

A&D Tip: A mortgage broker can help you model different scenarios: including “what if” interest rate changes, so there are no surprises later.

Step 2: Get pre-approval (even if settlement is a while away)

Pre-approval gives you clarity early.

It tells you:

• What a lender is likely to offer
• Whether there are any red flags in your financial profile
• How competitive your position is

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:

• First home buyers, this can mean time to keep saving
• Investors, it can mean capital working elsewhere until settlement
• Downsizers, it can align with the timing of selling your existing home

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:

• Stamp duty (unless exempt or concessional)
• Legal and conveyancing fees
• Loan application fees
• Lenders Mortgage Insurance (if borrowing above 80%)
• Moving costs
• Strata/body corporate contributions
• New furniture (it happens!)
• Investors may also consider:
• Depreciation schedules
• Property management fees
• Rental appraisal timelines

A&D 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:

• Strengthen your savings
• Reduce other debts (credit cards, car loans)
• Improve your credit position
• Plan the sale of your current home
• Structure your investment strategy

Life changes during this window too - marriages, babies, relocations, career shifts. The extended timeline gives you flexibility to adjust.

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:

• Finalise your loan application
• Provide updated financial documents
• Confirm valuation
• Lock in your loan structure

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:

• The lender transfers funds
• You receive your keys
• Repayments begin

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

• Often benefit from grants or stamp duty concessions
• May use the build period to strengthen savings
• Focus on affordability and long-term growth

Downsizers/Rightsizers

• Often coordinating sale and purchase timing
• May reduce or eliminate debt
• Prioritise low-maintenance living and cash flow freedom

Investors

• Consider rental yield, depreciation and tax strategy
• Value the delayed settlement structure
• Assess long-term capital growth potential

Young Families

• Use the build timeline to align with schooling or life changes
• Plan ahead for space needs
• Focus on stability and budget resilience

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.