Finance FAQs

Being ‘finance ready’ means you’re able to secure your chosen lot quickly and confidently.

To show you’re finance ready, ensure you have your proof of funds (if you’re a cash purchaser), your bank pre-approval letter or your broker’s Letter of Eligibility ready to upload with your registration. Providing these documents helps us verify your financial position and ensures a smooth process when securing your lot. If we’re unable to confirm your finance status at the time of submission, your application may not be prioritised.

It’s also important that you’re ready to lodge your formal finance application in line with the contractual timeframes, and you feel well informed and clear on these processes and timeframes.

Please provide proof of financial status by uploading either of the below to the registration form:

• Proof of funds (if you are a cash purchaser)
• A copy of your bank pre-approval letter or a letter of eligibility from your broker.

• Cash

In real estate, a “cash offer” means an unconditional offer that is not dependent on the buyer securing finance. While the buyer may have the full cash available, it can also refer to a pre-approved loan, meaning the buyer has secured funding and is proceeding to make an offer with no conditions prohibiting settlement

• Unconditional offer

An unconditional offer is a binding commitment to purchase a property with no attached conditions, such as finance approval or a building and pest inspection.

• Conditional offer

A conditional offer in real estate is an agreement to purchase a property under specific terms and conditions. Unlike an unconditional offer, which is straightforward and immediate, a conditional offer allows certain conditions to be met before the sale is finalised – like receiving formal finance approval.

• Subject to settlement of property

“Subject to settlement of property” means the buyer’s offer is conditional on the successful completion of the sale and settlement of their existing property to fund the new purchase. It’s a clause in the contract that provides a safety net, allowing the buyer to withdraw from the new purchase without penalty if their current property isn’t sold within a specific timeframe

• Subject to sale of property

“Subject to sale of property” means a buyer’s offer is conditional on them successfully selling their current home within a specific timeframe. This clause allows the buyer to purchase a new property before they have sold their old one, but if the sale of their current home doesn’t happen, they can terminate the new contract and typically get their deposit back.

• Subject to FIRB

“Subject to FIRB” refers to the need for a foreign buyer to receive approval from the Foreign Investment Review Board. If a sale is subject to FIRB, it means that a contract is conditional on the foreign buyer receiving this approval. The clause protects the buyer until this approval is secured.

Conditional finance approval is an early-stage, preliminary loan approval based on initial information, with the final loan contingent on meeting several conditions. Unconditional approval is the final, formal decision to lend money, meaning all conditions have been met, and the loan is ready to be finalised.

A Letter of Eligibility (LOE) for an intended purchase is a document issued by a lender or broker that provides a preliminary indication of how much you may be eligible to borrow and outlines any conditions relevant to your intended finance application.

It signals to sellers that you are a serious buyer who has already undergone an initial financial assessment. It also demonstrates that the finance professional acting on your behalf holds a high degree of confidence—based on your circumstances at the time—that you are likely to qualify for a loan for the desired land or house and land package amount.

POF stands for Proof of Funds, which is documentation proving a buyer has the necessary financial capacity to complete a real estate purchase. This document is crucial for both buyers and sellers, as it verifies your ability to pay and can help you stand out from other offers, especially in a competitive market.

Lender’s Mortgage Insurance (LMI) is a one-off upfront payment or is added to the loan amount typically when the borrower doesn’t have a 20% home loan deposit. This insurance safeguards the lender in case the loan is not fully repaid.

Stamp duty or ‘transfer duty’ is a state government tax imposed on the sale of residential properties. The amount of stamp duty you are required to pay on your property purchase is dependent on a number of factors, including the price of the property, its location and whether or not you are a first home buyer.

Zoning is a local council tool that regulates land use and development, with building a home being directly impacted by the Residential Design Codes (R-Codes). These codes determine the density of housing in a specific area, which is reflected in the minimum lot sizes and other design requirements, such as building height, setbacks, and open space.

A lower R-code, like R20, means lower density and larger minimum lot sizes, while a higher code, like R40 or R80, indicates higher density, allowing for more homes on a smaller plot, sometimes even apartments, especially in areas near public transport or amenities.

The first home owner grant (FHOG) is a one-off payment to encourage and assist first home buyers to buy or build a new residential property for use as their principal place of residence.

The grant is $10,000 or the consideration paid to buy or build the house if less than that amount.

Only one grant is payable per eligible transaction, so two people purchasing a house together may only receive one grant.

The total value of your transaction must not exceed the capped amount for you to be eligible for the FHOG or first home owner rate of duty. The cap varies depending on where the home is located.

To be eligible for the first home owner rate of duty, the unencumbered value of the home or vacant land must not exceed the dutiable value thresholds.

For a contract to build a new home or an off-the-plan purchase located:

• south of the 26th parallel of South latitude – value of land and building must not exceed $750,000. All Perth metropolitan areas are south of the 26th parallel.

• north of the 26th parallel of South latitude – value of land and building must not exceed $1,000,000.