Established suburbs such as Seven Hills, Toongabbie, Lalor Park and Kings Langley have plenty of older homes on generous blocks. That makes them popular for two projects: knocking down and rebuilding, or adding a granny flat.
Financing a knock-down rebuild
You'll usually refinance your current loan into a construction loan. The lender values the land plus the finished home and releases funds to the builder in stages, as explained in our progress payments guide.
Costs people forget
- Demolition and asbestos removal, if not in the build contract.
- Rent while you build, which can be a year or more, on top of loan interest.
- Council or certifier fees, service connections and driveway works.
- Landscaping, fencing and window coverings.
Financing a granny flat
If you have equity, the simplest option is often equity release as a separate loan split. Larger projects may need a construction loan with progress payments.
Dual occupancy
On suitable blocks, dual occupancy development is a bigger step with different lending rules. Talk to us early, before plans are finalised.
Rebuild or renovate?
If more than half the house needs work, rebuilding can be better value than renovating, and a new home may value higher. Renovations can be funded with equity release without the complexity of a construction loan. We'll compare both with your builder's quotes.
Talk through your build
Free, no-obligation chat with Ram Lakshmanan. No credit check to start.