Picture this: you're ready to build your dream home or investment property, but the thought of juggling mortgage repayments AND rent for 12 months while construction drags on makes your head spin. What if you could pause those loan repayments entirely during construction?
Enter Homepay: an innovative construction loan solution that's changing the game for savvy property investors and home builders across Australia.
What makes Homepay different?
Traditional construction loans have always been a necessary evil. As your builder hits each milestone, slab, frame, lock-up, fit-out. Your loan progressively draws down, and your repayments steadily increase. Meanwhile, if you're a first home buyer, you're still paying rent. If you're an investor, you're waiting months before rental income kicks in.
Homepay flips this model on its head.
With Homepay, you get:
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Zero mortgage repayments for up to 12 months during construction
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Interest capitalised into your loan balance at completion
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Market-competitive rates and generous borrowing capacity
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Access through accredited builders only (ensuring quality and timeline compliance)
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The full 12-month pause period even if your build finishes early
The numbers tell the story.
Let's break down the real financial impact:
Traditional construction loan:
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Month 3: ~$800/month after slab payment
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Month 6: ~$1,600/month after frame payment
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Month 12: ~$2,600/month at completion
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Plus: $400-600/week in rent throughout
Homepay construction loan:
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Months 1-12: $0 mortgage repayments
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Interest capitalised: ~$25,000 added to loan balance
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Start regular repayments when you move in or receive rental income
That's potentially $20,000+ in cash flow relief during your build, money you can use for furniture, landscaping, or simply maintaining your lifestyle without financial stress.
Who's a great fit for Homepay?
This innovative solution particularly suits three key groups:
1. First home buyers continue renting comfortably while your home is built, without the double burden of rent plus increasing mortgage repayments.
2. Upgraders remove the financial pressure of servicing two properties during construction, your existing home and your building loan.
3. Property investors align your loan repayments perfectly with rental income commencement. No more bleeding cash for months waiting for tenants to move in.
The strategic advantage for property investors:
For investors building their portfolio, timing is everything. Homepay allows you to:
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Preserve working capital during the construction phase
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Better manage cash flow across multiple properties
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Time your loan repayments to coincide with rental income
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Reduce the holding costs that often eat into investment returns
This is particularly valuable in today's market where construction timelines can blow out, with Homepay, their accredited builders are mandated to finish within the 12 months.
How MAB Sydney can help:
As Homepay accredited construction lending specialists with over $359 million in settled loans, we understand the complexities of building finance. Our team can:
- Assess your eligibility for Homepay
- Connect you with accredited builders in the network
- Structure your loan for maximum tax efficiency
- Compare Homepay against traditional construction options
- Ensure seamless progress payment management
Key considerations:
Before jumping in, consider these important factors:
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Interest capitalisation increases your total loan amount, typically by around $25,000 on a standard build
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Builder selection is limited to Homepay-accredited builders (though this ensures quality)
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The pause period is fixed at 12 months regardless of build time
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Standard lending criteria apply
Is Homepay right for you?
The answer depends on your specific situation. Homepay works best when:
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Cash flow during construction is a primary concern
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You're comfortable with a slightly higher loan balance at completion
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You're working with (or happy to work with) an accredited builder
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You value certainty and simplicity in your construction finance
It may not suit if you:
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Want maximum flexibility in builder selection
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Prefer to minimise your total loan amount
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Have significant cash reserves and don't mind progressive repayments
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Are building with an owner-builder arrangement
The bottom line:
Homepay represents a genuine innovation in construction finance, addressing one of the biggest pain points in property development, cash flow during construction. For the right borrower with the right project, it could mean the difference between proceeding with confidence or putting your property dreams on hold.
Whether you're a first home buyer looking to escape the rental trap, an upgrader planning your forever home, or an investor building your portfolio, understanding innovative finance options like Homepay could unlock opportunities you didn't know existed.
Ready to explore if Homepay could work for your next property project?
Book a strategy session with our construction finance specialists today.
Download the full guide here: Homepay - Build now, pay later
Mortgage Advice Bureau Sydney Pty Ltd | Credit Representative 528396 is authorised under Australian Credit Licence 389087. This information is general in nature and does not take into account your personal financial situation, needs or objectives. Before making any decision based on this information, you should consider its appropriateness having regard to your individual circumstances. Terms and conditions apply. Homepay loans are subject to lender approval and builder accreditation. Interest capitalisation increases your total loan balance and repayments.