Before we get into this week’s update, a little good news for the team. We’re proud to have been recognised in this year’s AFG awards, and I wanted to give a special thank you to our referral partners.
Every client you send our way comes with your trust attached. We never take that for granted, and this recognition is a lovely opportunity to acknowledge both our team’s hard work and your ongoing support.
Now, back to building. Once a client has bought their block, it doesn’t take long for the conversation to turn to floor plans, façades and a kitchen that somehow keeps getting bigger.
There’s also a useful finance question to ask: could the equity in that block help fund the build?
For clients who already own land, that equity may count towards their contribution to the project. This week, we look at how it works and what needs checking before the plans move off the page.
Can the Equity in Your Land Help Fund Your Build?
For buyers who already own their block, land equity can play an important role in financing a new home.
Equity is the difference between the land’s assessed value and the amount still owing on it. Depending on the lender’s assessment, it may contribute towards the construction project and reduce the additional cash the buyer needs to provide.
How it could work
Consider this simplified example:
| Item | Amount |
|---|---|
| Assessed land value | $400,000 |
| Existing land loan | $250,000 |
| Building contract | $350,000 |
| Assumed lender valuation on completion | $750,000 |
The buyer has $150,000 in land equity. Funding the existing land debt and the building contract would require $600,000 in total lending, before fees and other costs.
Against an accepted completed value of $750,000, that represents an 80% loan-to-value ratio.
The completed valuation is a separate assessment: it may differ from the combined land value and building cost. Lenders generally assess the proposed finished home using the building contract, plans and specifications.
What still needs to be checked?
Having equity is one part of the application. The lender will also consider:
- The accepted property valuation and permitted loan-to-value ratio
- The existing land debt and total funding required
- The buyer’s income, expenses and ability to meet repayments
- The building contract, additional costs and any required cash contribution
Cash may still be needed for the builder’s deposit, fees or items outside the approved finance. If the land loan is with a different lender, refinancing may also be required to arrange the construction funding.
A useful conversation for your next client meeting
For builder referrers, this is a good reason to reconnect with clients who own land and are still working towards their build.
Before they assume they need to save an entirely new deposit, reviewing their land equity, borrowing capacity, and building budget can clarify their options.
Have a client with a block and plans taking shape? Send them through, and we can work through the numbers together.
A proud moment for our team
We’re proud to see Mortgage Domayne recognised in the 2026 AFG Broker Awards. It’s a chance to celebrate our team and the work that happens behind the scenes to help clients move from their first conversation through to settlement.
To our referral partners and clients, thank you for being part of this achievement. Your trust and continued support mean a great deal to us, and we’re grateful for every opportunity to help bring your clients’ plans to life.
Interest Rates
VARIABLE
These indicative variable rates are for selected owner-occupier products, based on a $500,000 loan at 80% LVR, with principal and interest payments over 30 years (as of 2 October 2026):
| Lender | Rate p.a. |
|---|---|
| Commonwealth Bank | 6.49% |
| ANZ | 6.54% |
| Westpac | 6.49% |
| NAB | 6.44% |
| Bank of Queensland | 6.33% |
| Bank of Melbourne | 6.39% |
| Bankwest | 6.24% |
| Pepper Money | From 7.09% |
| ING | 6.09% |
| Suncorp | 6.18% |
Indicative advertised rates; product fees, package conditions and lender eligibility apply. Pepper Money: from 7.09% p.a. (advertised range 7.09–10.44% p.a. at 75–80% LVR); individual pricing requires assessment.
1 YEAR FIXED
The rates below are indicative 1-year fixed rates for selected owner-occupier products, based on a $500,000 loan at 80% LVR, with principal and interest payments over a 30-year loan term (as of 2 October 2026):
| Lender | Rate p.a. |
|---|---|
| Commonwealth Bank | 6.78% |
| ANZ | 6.49% |
| Westpac | 6.84% |
| NAB | 6.79% |
| Bank of Queensland | — |
| Bank of Melbourne | 6.84% |
| Bankwest | 6.49% |
| Pepper Money | — |
| ING | 6.74% |
| Suncorp | 6.29% |
— BOQ and Pepper Money do not currently advertise a 1-year fixed term. CBA, Westpac, Bank of Melbourne and Suncorp rates include package discounts. Product fees and eligibility apply; rates are subject to change.
