A guide to finance for your ready built homes

Buying a new home is an exciting time, involving lots of research, exploration and decisions. Getting your finances organised might not be the most thrilling activity on your new home to-do-list but there’s no getting around the fact that being finance-ready is an essential part of being in the market for a new home.
 
The good news is that arranging finance for a ready built home is relatively straightforward. That’s partly because ready built homes involve one price and one contract. It’s also because the timelines between selection and ownership are shorter, meaning that, compared to buying a home before construction starts, ready built finance requires fewer steps.
 
Let’s look into finances for ready built homes.

A ready built home refresher

A ‘ready built’ home is when you buy a house that’s either already fully built or is close to completion. 
 
So, rather than buying land and then designing a house, or buying off-the-plan before the soil has been turned on the block of land, your home will already be close to welcoming you as its new owner.

Ready built is different to a turnkey home, as turnkey houses only start construction once you’ve signed a contract.
 
Choosing a ready built home means moving in day is within sight even from the first moment you consider a property. These shorter time frames mean that the financial element of buying your new home is streamlined. 

Benefits of ready built home finances

Before we outline what steps you will need to take when securing finance for a ready built home, let’s look at steps and risks you won’t need to take:

• Choosing ready built means there’s no need for construction finance (sometimes referred to as ‘development finance’). That’s because the development and construction phases of your new home are either well underway or already completed.
• Ready built means there will be fewer uncertainties with title registration and other potential delays. 
• The shorter timeframes mean it will be less likely that your pre-approval agreement will lapse (most only last for 90 days).
• It’s less likely that your personal and financial circumstances will change significantly 

Saving a deposit:

If you’re looking to buy in the next year or so, you’re likely already well down this road. For a Rawson Ready Built home, you’ll need to have saved 10 percent of the total price as a deposit by the time you’re ready to say ‘yes’ to a specific home. This is also the time to learn about non-loan costs, like conveyancing fees and stamp duty (which can be waived or discounted for first home buyers, or, in NSW, be substituted for ongoing land tax).

Choosing ready built can make deposit saving a little easier by having one straightforward price, rather than the complexities of trying to price land and building separately, or buying an older home that might require renovations with an unknowable price tag.

Selecting a lender or broker:

You’ll be aware of interest rates and fees and charges associated with home loans, so shopping around for different banks is well worth the time and effort. We encourage you to start this step as soon as you consider yourself a soon-to-be home buyer, so that you are further down the road once it’s time to get serious.
 
Enlisting the help of a mortgage broker can be a great way to short-cut much of the time you’ll need to dedicate to this task, as well as a guide for ensuring you understand all the home loan lingo.
 
Many brokers will also provide a ‘maximum borrowing assessment’ (sometimes known as a ‘pre-credit assessment’) to help you focus in on your price range, allowing you to feel comfortable while looking at properties. However, because ready built properties are almost ready to be moved into, you can usually skip this step and go straight to pre-approval (see below).

Need mortgage advice? Book an appointment with our finance partner at Mortgage Advice Bureau.

Gathering your documents: 

Get down to nuts and bolts by gathering the information and documentation required by a lending bank or other financial institution. We’re talking about things like proof of income, record of savings, evidence of your general expenses and info about other loans and debts. If you’re using a broker, they’ll help step you through what’s required. 

Getting pre-approval:

Once you have pre-approval from a bank or financial institution, you can start your house hunting in earnest. Pre-approvals almost always last for three months, which coincides beautifully with ready built homes being around three months or less from completion. That’s a real benefit of choosing a ready built home!

Loan approval:

Once you have your specific ready built home selected, the property’s valuation will feed into the final loan approval process. Then, it will be time to both pay your deposit and fully formalise your home loan. By this stage, you’ll have the support of your builder and bank (plus a broker if you choose to use one) to talk you through each step in this process, allowing you to both dot all the i's and start to get excited about your new dream home!

Benefits of buying a ready built home

There are so many benefits of going down the ready built road. Your new home will already be built (or nearly built), meaning that move-in day is not far away. You’ll have saved yourself a whole heap of decision making and, assuming you choose an experienced builder, your home will be high quality. With Rawson Homes, your ready built home includes elements that might be extra with other builders, like fencing, landscaping, a driveway, a clothesline and even a letter box!

Now you also know that there are benefits of buying ready built when it comes to organising your finances. The all-inclusive nature of ready build means you’ll save yourself the shock of unexpected costs. And, the shorter timeframes mean you’ll have fewer steps to undertake.

In summary

Financing a ready built home is more straightforward than building from scratch or buying (and likely renovating) an existing home. Choosing ready built can give you more certainty about your home finances right from the start.

We hope you’ve found this overview of finance for ready built homes helpful. If you’re interested in exploring options for a ready built home in the ACT or NSW (including the Hunter, South Coast, Illawarra and Central West), what’s a good next step? 

Simply contact us today or explore our ready built homes for sale!

FAQs

What does ready built house mean?

A ready built home is one that is almost finished being built or is already fully completed. Ready built home buying timelines and finance can be more straightforward than other options, meaning that you get to move into your dream home sooner!

What are advantages of buying an already built house?

Buying a ready built home has so many benefits. Ready built avoids the stress of delays that can happen during construction. You’ll avoid decision-fatigue, thanks to the design and fittings already having been selected by experts. Ready built finance is more straightforward as there’s one single price and contract. 

Where can I buy a ready built home near Sydney?

Rawson Homes will have ready built homes for you both in the Australian Capital Territory and in various NSW locations, including the Hunter, Illawarra, the Central West and the South Coast.