Financing Your New Home at Ellendale: Your Path to Elevated Living in Brisbane’s Most Naturally Beautiful Address

Upgrading to a brand-new home is an exciting milestone, and at Ellendale, we offer the perfect canvas to create the home of your dreams in the tranquil yet well-connected suburb of Upper Kedron, Brisbane.

Set amidst the natural beauty of South D’Aguilar National Park and only moments from modern convenience, Ellendale offers a lifestyle of balance. 

Before you embark on this exciting journey, it's essential to understand the financial aspects of purchasing land and building your new home. Financing a new build can be different from buying an established property, and with the right guidance, you can make this process seamless and stress-free. 

In this blog, we’ll walk you through everything you need to know about financing your new home build at Ellendale—from budgeting to securing the right loan options—so you can confidently make the move to a new chapter in your life. 

Understanding factors that can influence your budget

Location, community and accessibility are often the first points of consideration during the homebuying journey. If you’re choosing to upgrade to a new build home, understanding the build cost of your new home is also paramount as it helps to determine where you can build, and the type of home is suitable for your lifestyle and budget.   

Consider key features such as the number of bedrooms, layout, outdoor space, and additional elements like home offices or entertainment areas. Understanding what you need from your home early on will help you budget more accurately, as the cost of your build will depend on the design, size, and features you choose. 

By defining both the home and lifestyle you want, you’ll have a clearer understanding of the investment required and can align your budget accordingly to make your dream home a reality. 

Prepare Your Deposits

When building a new home, you’ll need to consider two types of deposits: 

• Developer Deposit: To secure your homesite at Ellendale, an initial payment of $5,000 is required, along with the submission of an Expression of Interest (EOI). The balance of the 10% deposit is due within five business days of the contract being executed. This deposit will be credited toward the total deposit required by your lender. 

• Mortgage Deposit: The typical deposit required by lenders is between 5% and 20% of the property’s value. The initial 10% deposit paid at the time of signing the contract will count toward your mortgage deposit.  

Once both deposits are organised, a mortgage broker or your bank loan manager can assist you in navigating the approval process, confirming if Lenders Morgage Insurance (LMI) is required, and ensuring that everything is in order for your new home purchase. If you’re unsure on the deposit structure, please reach out to your broker or your loan manager for more guidance.

Understand The Construction Loan Repayment Structure

When upgrading to a brand-new home with a house and land package, your loan is called a construction loan, which has a repayment structure distinct from other property types. The process begins with settling the land, and once this is done, your construction loan repayments will commence. This means you'll need to account for repayments on the land component right from the start. 

Once your land settles, the construction phase begins, and repayments will align with the stages of the build. 

A typical construction loan repayment schedule may look like this: 

Source: Queensland New Homes Construction Contract (Oct 2015) 

These progress payments are made as each construction stage is completed, and funds are drawn down progressively. Importantly, interest is only charged on the funds that have been drawn down, not on the full loan amount. 

Before the final progress payment is made, your lender will require an independent valuation to confirm that the construction has been completed according to the original plans and specifications. Once the build is finished, full repayments will begin, including both principal and interest. 

Understanding the timing and structure of both land repayments and construction loan repayments will help you effectively manage your finances throughout the build. 

Choose the Right Home Loan for Your Needs

Selecting the right home loan is key when upgrading to a new home at Ellendale. There are several loan options to consider: 

• Variable Rate Loans: These loans have interest rates that fluctuate with market conditions, meaning your repayments can change. A major benefit of variable loans is the ability to make additional repayments without penalties. 

• Fixed-Rate Loans: Fixed-rate loans offer the advantage of predictable repayments, as the interest rate remains the same for a set period. However, if interest rates drop, you might pay more than you would with a variable loan. 

• Split Loans: A split loan combines both fixed and variable rates, giving you flexibility in managing your loan. 

A mortgage broker can help you explore these options to find the best fit for your financial goals and long-term plans. 

Leverage Existing Equity

If you currently own a property, you may be able to leverage the equity in your current home to help fund your new home build at Ellendale. Equity is the difference between the market value of your current property and the amount you owe on it. This can be particularly helpful for avoiding the need to save for a new deposit from scratch. 

By using your existing equity, you can access a larger deposit for your new home. Speak with your lender or mortgage broker to determine how to leverage your property’s equity in your new home purchase. 

Consider Stamp Duty and Other Costs

Stamp duty is a government tax applied to property purchases. However, with a house and land package, you only pay stamp duty on the land—not the house. This offers a significant saving, as the house portion of the purchase price is exempt from stamp duty. If you’re a first-time homebuyer, you may also qualify for additional grants and incentives to avoid stamp duty costs or to help you make your first step toward homeownership, so be sure to explore our first home buyer guide here for more information.

Your solicitor or lender can guide you through these costs, ensuring you're fully prepared for the financial aspects of purchasing your new home at Ellendale. 

Ready to Build Your Dream Home at Ellendale? 

Upgrading to a brand-new home at Ellendale is more than just a move—it’s a chance to embrace a lifestyle of balance, nature, and connection. Bordering the never-to-be developed South D’Aguilar National Park, in Upper Kedron, and just 12km from the Brisbane CBD, Ellendale offers the perfect combination of peaceful, nature-inspired living and modern convenience. Whether you enjoy weekend walks through lush parks, connecting with your neighbours, or simply relaxing in your beautiful new home, Ellendale provides the ideal environment to grow, thrive, and enjoy life to the fullest. 

By carefully considering your finances, organising your deposits, and choosing the right loan, you can make your dream home a reality with ease. 

At Ellendale, we’re here to support you every step of the way. Ready to explore your options? Contact our team today to discover your ideal land and home options within our vibrant, nature-rich community, or email ellendale@cedarwoods.com.au.