News Corp Australia
First published 25 Jul 2025, 6:30am
Build now, pay later later schemes are helping buyers of new builds save money whike they wait for their projects to be completed.
Buy now, pay later models that have revolutionised retail are being rolled out in the NSW building industry in an effort to boost buying activity from those struggling with rising living costs.
Mortgage repayments and other ongoing costs remain a significant financial drain on those waiting to get their homes built and the aim is to ease this burden.
Homepay is a “build now, pay later” finance model designed to allow users to pause mortgage repayments for up to 12 months during the construction phase – and it’s becoming available with more builders.
Multiple builders have already provided the option for home buyers across a number of projects, with residential builder North Homes becoming the latest NSW builder to be accredited.
North Homes, an arm of property group Landen, will roll out the scheme across a range of house and land package projects from Friday.
Eligible North Homes buyers will be able to access the offer on a house and land packages across more than 125 lots.
This includes sites in Oakville, Rouse Hill, Grantham Farm, Claremont Meadows, Marsden Park, The Honours in Norwest, and an upcoming release in North Kellyville. More estates are set to follow.
A house and land package project in Rouse hill being developed by North Homes.
The finance model allows eligible buyers to pause repayments during construction on both their build and their land.
Regular repayments resume after the repayment-free period expires and users are charged for the interest accrued over the pause, which is then repaid gradually over the remaining term.
Interest rates are charged close to the mortgage industry average, starting at 5.55 per cent for owner occupiers with higher deposits.
The aim of the option is to help ease financial pressure for buyers by avoiding the burden of double repayments, such as paying rent and a mortgage, or bridging the gap between selling an existing home and settling into a new one.
Landen director Rashed Panabig said Homepay would give buyers more “breathing room” while their home was getting built.
“We’ve had a lot of direct conversations with buyers over the past year, and the same theme keeps coming up,” he said.
“We’re seeing more buyers who want to build but simply can’t afford to carry a mortgage and rent, or two mortgages, at the same time.
“In some cases, a shortfall of $50,000 to $60,000 is also stopping buyers from being able to move forward.”
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