Building a new home is one of the biggest financial commitments you will make, and the process can feel overwhelming if you have not been through it before. This guide walks through every stage from signing the contract to collecting the keys, in plain language and without the jargon.
Stage 1: Contracts and Finance
The journey begins when you sign your contracts. For a house and land package, this means a contract for the land purchase and a separate building contract for the construction. Once contracts are signed, your priority is to finalise your finance. Your lender will assess the contracts, order a valuation of the land and proposed dwelling, and issue formal approval. This process typically takes two to four weeks. Until finance is formally approved, you are relying on your finance condition in the contract to protect you. Do not assume approval is a formality — provide all documents your lender requests promptly.
Stage 2: Land Settlement
Once finance is approved, you proceed to settlement on the land. This is when ownership of the block transfers to you (or your lender, technically, with you as the registered owner). Settlement is coordinated by your conveyancer or solicitor and typically occurs four to eight weeks after contracts are exchanged, though this varies. At settlement, you pay the balance of the land purchase price (funded by your loan), stamp duty is paid (unless exempt as a first home buyer), and the land is registered in your name. After land settlement, the building process can begin.
Stage 3: Pre-Construction
Before your builder starts on site, several things need to happen. The builder lodges for building approval if not already obtained, conducts a site survey and soil test if not already completed, prepares construction drawings and engineering, and orders materials with long lead times. The builder will also schedule your pre-start meeting, which is one of the most important meetings in the entire process. At the pre-start meeting, you will confirm your selections for fixtures, finishes, and colours, review the construction drawings, discuss the build timeline, and clarify any remaining questions. Take this meeting seriously. Decisions made here are what gets built. Changes after this point are costly and cause delays.
Stage 4: Construction
Construction typically follows a sequence of defined stages. The slab stage involves site preparation, footings, and pouring the concrete slab. This is the foundation of your home. The frame stage involves erecting the timber or steel frame, installing roof trusses, and applying the roof covering. The lock-up stage involves installing external cladding, windows, and external doors so the building is enclosed and secure. The fixing stage involves internal fit-out including plasterboard, cabinetry, internal doors, tiling, and painting. The practical completion stage involves final fixtures, appliances, cleaning, and the home being ready for handover. Each stage typically takes two to six weeks, with the total construction period running six to nine months for a standard home. Your builder should provide a construction programme showing the expected timing for each stage.
Stage 5: Progress Payments
During construction, your builder will invoice you at defined stages — typically matching the stages described above. Your lender will require their own inspection of the work before releasing funds for each progress payment. The typical payment structure is a deposit on signing the contract, then payments at slab, frame, lock-up, and fixing stages, with a final payment at practical completion. The specific percentages are defined in your building contract and regulated by state legislation. Your conveyancer and lender will coordinate these payments, but you should track them against the construction programme to understand where your project stands.
Stage 6: Practical Completion and Handover
When the builder notifies you that the home is practically complete, you (or a building inspector you engage) conduct a final inspection. This inspection identifies any defects or incomplete work. Create a written list of all items that need attention. The builder is required to rectify these defects before or shortly after handover. Once defects are addressed and the final payment is made, you receive the keys. Your builder will provide operating manuals for appliances and systems, warranty documentation, certificates of compliance for plumbing, electrical, and building work, and a maintenance guide for your new home. There is also a defect liability period, typically several months after handover, during which the builder is responsible for rectifying any defects that emerge through normal use.
Stage 7: Final Settlement (if applicable)
If you purchased off the plan or as part of a development where titles were being created, there may be a final settlement process. This involves the new title being created and registered, your lender completing a final valuation, and formal settlement occurring through your conveyancer. This process can add several weeks to the timeline after construction is complete.
Checklist: Your Build Journey
- Contracts signed and finance condition in place
- Finance formally approved by lender
- Land settlement completed and title registered
- Pre-start meeting attended with all selections confirmed
- Construction programme received from builder
- Progress payments tracked against construction stages
- Regular site visits or photo updates from builder
- Practical completion inspection conducted
- Defect list provided to builder in writing
- Final payment made and keys received
- All certificates, warranties, and manuals collected
- Defect liability period noted in your calendar
Common Mistakes
The most common mistakes first home buyers make during the build journey include not finalising finance promptly after signing contracts, treating the pre-start meeting casually and then wanting to change selections during construction, not tracking progress payments against the construction programme, not conducting a thorough practical completion inspection, making verbal rather than written requests for defect rectification, not engaging an independent building inspector for the final inspection, and underestimating the time between practical completion and being able to move in.
Frequently Asked Questions
How long does the entire process take from contract to keys?
For a house and land package, allow nine to fifteen months from signing contracts to handover, depending on land settlement timing, approval timeframes, and construction duration.
Can I visit the site during construction?
Most builders allow site visits at defined stages, typically with prior arrangement. You generally cannot access the site unsupervised during active construction for safety and insurance reasons.
What if I want to make changes during construction?
Changes during construction are called variations. They require formal approval, will likely increase the cost, and may delay the build. Minimise variations by making thorough decisions at the pre-start meeting.
Do I pay rent and a mortgage at the same time?
During construction, you will typically be making interest-only payments on the drawn portion of your loan. If you are renting, you will carry both costs until handover. Budget for this overlap period.
What is practical completion?
Practical completion means the home is complete to the point where it can be reasonably occupied, even if minor defects remain. It triggers the final progress payment and handover process.
Should I get an independent building inspection?
Yes. Engaging a qualified building inspector for the practical completion inspection is strongly recommended. They will identify issues that an untrained eye may miss.
Kaizen Projects guides first home buyers through every stage of the build journey with clear communication and no surprises. Get the First Home Buyer Guide to understand the full process before you start.
General information only, not financial, tax, or legal advice. Seek independent advice for your circumstances.