What Can I Expect My Costs to Be?


The Cost of Building

Everyone likes to know how much something costs.  This is not so easy because there are so many variables and third party costs that can differ, but this should give you a helpful guide.

Third Party Costs


You can expect to be charged to settle your loan and your lawyer will charge you to settle and register the mortgage and register you on the title of land.  We do believe you should run your legally binding documents past your lawyer so you may expect to pay a little more than with a house purchase.  But the cost should still be reasonable.  We have seen a few cases where clients have sought legal advice on so many aspects of the process that the bill ended up being several  thousand dollars more than was probably necessary.  We would expect that you would pay upwards of $2,000 for a standard build settlement. With a reasonable deposit you may expect the bank to provide a cash contribution that you may apply to this cost.

Settling your property in a Trust can be more complex and may cost more.

If you complete the required Identification (AML ID - Anti Money Laundering regulatory requirement)  process through your lawyer, this too, may cost a little more.


You will be required to secure both a valuation (at the start of the project) and a Valuer's Completion Certificate (at the end of your project).  Valuation fees differ quite a lot by region, but a very general rule of thumb is you pay $100 per $100,000 of value of your proposed project (example, a $1m build should cost you around $1,000).  You should pay less than half this price for a Completion Certificate

The Bank Costs

The bank will offer you an interest rate.  All build loans must be on a floating rate until completion, then you can then fix part or all of your loan. 

The bank will charge a Low Equity Margin (LEM) to your interest rate if you have less than 20% deposit/equity.  The margin will be removed once you reach 20%, and can be reduced each time you improve your equity.  NewBuild recommends you consider a full valuation on completion of your build because you may have more equity by then and be able to reduce your LEM. 

Low Equity Margin Bands

LVR      LEM

80.01 –   85.00% LVR    0.30%   p.a.

85.01 –   90.00% LVR    0.75%   p.a.

90.01 –   95.00% LVR    1.30%   p.a.

>95.00%   LVR              1.50%   p.a.

NewBuild Costs

NewBuild will include within your  loan a $1,000 fee to manage the build plus a $500 application fee.  We will also include $500 for inspection reserves to help cover progress inspections.  By building these costs into your loan they are not an out-of-pocket expense.

You may be charged the $500 application fee once your loan is pre-approved, even if you choose not to proceed with your loan offer.  Managing your construction loan is expensive but in most instances we are remunerated by the lender so you do not need to pay us for our services ( except as mentioned above).  We require you to stay with NewBuild long term, at least three years, and if for any reason you don't remain for three years, you will be asked to remunerate NewBuild. 

Early Repayment Fee - 0.8% of the loan moved away or discharged from NewBuild within 36 months of Code Compliance

NewBuild Management Exit Fee - 0.5% if the loan is moved away or discharged within 36 months of Code Compliance Certificate (totalling 1.3% for a NewBuild transaction)

Purchase, Turnkey or Refinance Early Departure - 0.8% if the loan is moved away or discharged within 24 months

Insurances Early Cancellation Fee - maximum 12 months Annual Premium with in 24 months

Top up, or Loan Restructure fee $250

Loan Renewal Fee $250 (after 180 days)

AML Disclosure Process (or assisting Lawyer with AML) - $500

Cancellation of Approved Loan - $500, unless loan is or could reasonably have been declared unconditional, then Early Departure fee applies.

Non- Bank Funded Loans 1% plus up to 1% at any loan roll over (Funder fees are additional)

These terms and costs are covered in the disclosure statement provided to you free in the website under the advisor link.  NewBuild will also include the management fee, so combined your early repayment cost will be 1.3% of the loan limit originally settled.