FINSTREET Homepay Construction Loans for Australian Mortgage Brokers
A client is ready to build, but they’re still paying rent or servicing a mortgage on their current home. Can they manage the cost of both during construction? That’s where FINSTREET Homepay may be worth assessing.
FINSTREET Homepay is a residential construction finance option available through FINSTREET-accredited mortgage brokers. Eligible borrowers building with a Homepay-accredited builder may pause scheduled repayments on the land and construction portions of their loan for up to 12 months from loan settlement. Interest continues to accrue during the pause and is added to the loan balance. Homepay repayment FAQs
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How does the Homepay repayment pause work?
The pause is measured from loan settlement, so any gap between land settlement and the start of construction uses part of the available period. As construction progresses, interest is calculated on the amount drawn. When the pause ends, scheduled repayments begin and the borrower repays the capitalised interest as part of the loan balance. An offset account may be available during construction, subject to the loan terms.
When assessing a scenario, check two figures with the client: what they’ll need to cover while the home is being built and what they’ll need to pay once the pause ends. If construction runs beyond the approved pause, repayments may begin before handover. For a client still paying rent or an existing mortgage, that overlap belongs in the cash-flow assessment. Homepay repayment FAQs
Which construction scenarios could suit Homepay?
| Client scenario | What to check first |
|---|---|
| Renters and rentvestors planning a build | How long rent will continue and what repayments could look like once the pause ends. |
| Homeowners building their next home | Whether the existing mortgage will still be in place when repayments on the new loan begin. |
| Clients who already own land or are considering a nomination | How the land is held or will settle, and whether the proposed land and construction structure fits current lending policy. |
| Investors building a rental property | Whether the client can cover repayments if handover or the start of the tenancy is delayed. |
Use the Homepay Broker One-Page Tool alongside your initial file review to work through the questions to raise with your FINSTREET BDM. Fill in the form to download the PDF.
How do base LVR and total LVR differ?
The Homepay Standard structure can include three components:
- Primary mortgage — the base loan for land and construction.
- Interest allowance — the estimated interest set aside for the repayment pause. Actual interest depends on the drawn balance and timing of construction payments.
- Construction Risk Fee (CRF) — a separate component that may be financed where applicable under the product terms.
The base loan-to-value ratio (LVR) looks at the primary mortgage against the applicable security value. The total LVR reflects the proposed facility including the interest allowance and any financed CRF.
For example, assume an applicable security value of $800,000 and a primary mortgage of $680,000. The base LVR is 85%. If the modelled facility includes a $32,000 interest allowance and an $8,000 financed fee, it totals $720,000, or 90% LVR. These figures illustrate how the two ratios are calculated. Actual amounts depend on the scenario and current lending terms.
When comparing Homepay with another construction loan, start with the same amount the client needs for land and construction. Then compare repayments during the build, the expected loan balance at the same point in time, and how each option treats fees such as CRF or lenders mortgage insurance (LMI), where applicable. This shows the client what the repayment pause could change for both their monthly cash flow and their overall borrowing costs.
What should brokers check before submitting a Homepay scenario?
- Builder and location. Confirm the builder is Homepay-accredited and can take on the proposed build in the relevant area.
- Land and build timing. Check the land settlement date, expected construction start, progress payment schedule and estimated handover.
- Project costs and funds available. Confirm the land cost or existing land position, build contract value, client contribution and any allowance for variations.
- Servicing and loan structure. Use the Homepay OPICA calculator in the FINSTREET Broker Portal to review servicing and model the loan splits. Eligible applications are submitted through Simpology Loanapp v2.
Homepay’s builder accreditation process includes a review of build quality, historical construction timeframes and the builder’s financial position. Homepay builder accreditation process
Frequently asked questions
When does the 12-month Homepay repayment pause start?
The maximum pause is up to 12 months from loan settlement, subject to the approved loan terms. Confirm the settlement date and expected handover together so the client can plan for any overlap between construction and scheduled repayments. Homepay repayment FAQs
Can clients use their own builder with Homepay?
They can use their preferred builder if that builder is Homepay-accredited and the proposed project meets the applicable requirements. Confirm accreditation and availability early in the scenario review. Homepay builder accreditation process
Can investors use FINSTREET Homepay?
Eligible investors can be considered for residential construction finance. Assess whether the borrower can cover repayments when the pause ends, including a period before the property is tenanted. Homepay product overview
Discuss a Homepay scenario with FINSTREET
Have a client planning a build? Send your FINSTREET BDM the property location, land position, proposed builder, build cost and expected timeline. Our team can help you check the product fit and clarify what’s needed for the next step.
For Australian mortgage brokers. This article provides general product information. Lending is subject to eligibility, valuation, credit assessment, lender policy, approval, fees, charges and applicable terms.
Homepay Accredited Builders
Select a state or region to see the builders listed by Homepay. Confirm current accreditation and coverage for the proposed build location before submitting a scenario.
Victoria
Regional Victoria
- C+M Build Group
- Regional Home Builders
New South Wales
Regional New South Wales
Queensland
South Australia
- Ellerston Homes
- GDev
- Regent Homes
Tasmania
Western Australia
Confirm current builder availability in this region with Homepay before progressing a scenario.
Northern Territory
Confirm current builder availability in this region with Homepay before progressing a scenario.
Australian Capital Territory
Confirm current builder availability in this region with Homepay before progressing a scenario.
Directory checked against Homepay on 13 November 2026.
