Buying process · Finance
Do you need a construction loan to buy a finished new home?
No. A standard home loan applies, because the house already exists. The valuer inspects a finished building rather than a set of plans, and the money moves once at settlement instead of in stages. Below is the sequence from contract to keys.
General information only, not financial advice. Last updated: July 2026.
What loan applies to a completed house?
A standard home loan applies. A construction loan exists to release money in stages while a builder works. When the house is already finished, there are no stages left to fund, so lenders treat the purchase as an ordinary residential one: an existing building on a titled lot, bought under a single contract of sale.
That single contract is the practical difference. A build-to-order purchase usually splits into two contracts, one for the land and one for the building work, and the construction loan is written to match that split. A completed home has one property, one price and one settlement, so the loan product is the same one used to buy any established house.
Because the transaction is a property transfer rather than a build, the ordinary purchase steps apply: contract of sale, finance approval, valuation, then settlement on a normal timeline of about 30 to 60 days. If you want the whole purchase path rather than the finance leg alone, start with how to buy a finished home.
When does the valuation happen?
After the contract is signed, when your lender orders it during formal approval. The valuer inspects the finished building, so the figure reflects what is physically there. A construction loan instead values the proposed home as if complete, an estimate of a building nobody has walked through yet.
The practical effect is timing and certainty. On a finished home, the valuer attends the property, measures it, records the finishes and fixtures actually installed, and compares recent sales of comparable completed houses nearby. You know the outcome before settlement, and you are looking at the same house the valuer looked at.
On a build-to-order purchase, the valuation is done on plans, specifications and the building contract, then revisited at completion. Any gap between the estimate and the finished result lands months later, once the money is already committed.
The usual sequence on a completed home runs:
- Pre-approval, so you know your borrowing capacity before you inspect. Sizing that up front helps, and the affordability calculator gives you a starting range.
- Contract of sale signed on a specific finished house, usually subject to finance.
- Formal approval, with the lender ordering the valuation on the actual building.
- Unconditional, once the valuation and your finance condition are satisfied.
- Settlement, where the title transfers and you take the keys.
How do progress payments differ?
There are none on a completed home. A construction loan draws down in stages, typically slab, frame, lock-up, fixing and practical completion, with an inspection before each release. A finished house is paid for once, at settlement, when the loan amount and your deposit are exchanged for the title.
That changes what you carry while you wait. Under a construction loan you pay interest on the balance drawn so far, and that balance climbs with each stage claim, so repayments rise through the build. Many buyers also pay rent over the same period. On a completed home there is no drawdown period at all, because the loan starts in full on settlement day and the house is available to live in or lease from that date.
It also removes a layer of administration. There are no stage claims to check, no builder invoices to pass to the lender, no inspection bookings between releases and no variations to reprice mid-build. Pearson Bros Homes builds the home first and lists it once it is finished, sold at a fixed price under a single contract, so the build risk sits with us rather than inside your loan.
What does the lender need before settlement?
Formal approval, a satisfactory valuation of the finished house, signed loan documents, evidence of your deposit and funds to complete, building insurance effective as your lender requires, and certified identification. Your solicitor and the lender then book settlement together.
In practice the checklist looks like this:
- Identification and income evidence verified, and any conditions on the approval cleared.
- Valuation report returned at or above the contract price, or a plan agreed with your broker if it comes in lower.
- Loan documents signed and returned, then certified by the lender.
- Building insurance arranged, with the policy noted in favour of the lender. Queensland contracts usually put the property at the buyer's risk from shortly after signing, so ask your solicitor for the exact date.
- Funds to complete confirmed: deposit, transfer duty if payable, and legal and adjustment costs.
- Pre-settlement inspection of the finished home, which you can actually do, because the house is standing.
First home buyers of new homes pay nil Queensland transfer duty with no value cap on contracts dated from 1 May 2025, which changes the funds-to-complete figure. Eligibility depends on your circumstances, so confirm it with your solicitor.
Buying inside a self-managed super fund works differently again. New SMSF residential borrowing (LRBAs) is legislated to end: the ban received royal assent on 26 June 2026 and commences on 10 August 2026, with existing arrangements and any contract exchanged before that date grandfathered, and commercial property excluded. A completed home remains a cash-purchase option for a fund, under a single contract of sale with no build risk inside it. The SMSF property guide covers the structure, and speak to your accountant.
For current market context in the corridors we build in, our note on Ipswich house price growth picking up pace in 2026 sets out where values have moved.
Frequently asked questions
Do I need a construction loan to buy a completed house in Queensland?
No. A construction loan exists to release money in stages while a builder works. When the house is already finished, there are no stages left to fund, so a standard home loan applies. You are buying an existing building on a titled lot under a single contract of sale, which lenders treat as an ordinary residential purchase.
When does the valuation happen on a completed home?
After your contract is signed and the lender orders it during formal approval. The valuer inspects the finished building, so the valuation is based on what is physically there rather than on plans and specifications. A construction loan values the proposed home on an as-if-complete basis, which is an estimate of a building nobody has inspected yet.
Are there progress payments when I buy a finished home?
No. A construction loan draws down in stages such as slab, frame, lock-up, fixing and practical completion, with the lender inspecting before each release. A completed home is paid for once, on settlement day, when the full loan amount plus your deposit is exchanged for the title. There are no stage inspections and no interest-only construction period.
What does the lender need before settlement?
Formal or unconditional approval, a satisfactory valuation of the finished house, signed loan documents, evidence of your deposit and funds to complete, building insurance effective from the contract date or settlement as your lender requires, and certified identification. Your solicitor and the lender then book the settlement date together.
How long does settlement take on a completed home?
A completed home settles on a normal property timeline of about 30 to 60 days from contract, the same as any existing house purchase. A build-to-order contract instead runs for the length of construction before you take the keys.
See homes that are already finished
Completed, move-in-ready houses sold under a single contract of sale at a fixed price, financed the same way as any established home.
View available propertiesGeneral information only. Nothing here is financial, tax, credit or legal advice, and no rates or repayment figures are stated. Lender requirements, transfer duty concessions and the legislated SMSF borrowing changes depend on your circumstances and can change. Obtain advice from your broker, accountant, solicitor or a licensed specialist before signing a contract.