HomePay: The Smarter Way to Fund Your Next Investment

Picture a PAYG professional who has bought land, has a builder's contract in hand, and wants to know how the first year of construction will sit alongside the household budget. A common question at this stage is whether the loan repayments can wait until the build is finished. HomePay is the Build Now Pay Later product offered through Elite Wealth Creators. This post explains how its timeline works and what to weigh before deciding whether a project suits it.

How the HomePay timeline works

HomePay offers zero monthly payments for the first 12 months during construction. Once that period ends, standard repayments begin. It is not an interest-only loan, so the repayment picture changes in one step at the end of month 12 rather than easing gradually.

The question that matters most is not what happens during the build, but what the loan looks like from month 13 onward.

How interest is treated during those 12 months changes the total cost of the loan, and it can change the balance you start repaying. Ask for the full schedule in writing before you sign anything.

Where SMSF buyers need to look closely

If the purchase is being considered through a self-managed super fund, the rules have moved. Since 10 August 2026, a fund generally cannot open a fresh borrowing arrangement to buy a house or unit (MFAA). A residential investment is not business real property, even when tenants pay rent on it (Levio). Buying a residential property with cash held in the fund remains possible, because the restriction targets borrowing (Lendology). Contracts exchanged before 10 August 2026 are still protected even if settlement falls later (Australian Property Experts).

Whether HomePay can be used within a fund structure is a question to confirm with EWC and an SMSF specialist accountant before any contract is signed. For new residential SMSF projects, EWC works with a unit trust structure, where the borrowing sits in the unit trust rather than the fund. Fund deposits usually come from contributions or existing balances. The ATO lists the general concessional contributions cap at $32,500 for 2026-27 (ATO). Inside the fund, these contributions generally face 15% tax (SuperGuide).

The trade-offs to weigh

Zero repayments for 12 months can ease cash flow during a build. The debt does not disappear, though, and several factors deserve attention:

• The month 13 step-up. Standard repayments start on the loan balance at that point, which depends on how interest was treated during construction.
• Build delays. If construction runs past 12 months, ask how the timeline and repayments are handled.
• Costs outside the loan. Council fees, insurance, rates, and landscaping still need to be paid from somewhere.
• Rental income. Realistic rental yields, vacancy periods, and the cost of a vacant month all affect the cash flow after completion. Rental income is not guaranteed, so an independent rental appraisal is worth getting before you count on it.
• Changing rates. Repayment amounts depend on the interest rate when repayments begin, so the figure at month 13 may differ from today's estimate.

A worked example (illustrative only)

Consider a 42-year-old PAYG employee building a townhouse on land they already own. The build contract is $650,000, and the loan covers $520,000 of that contract price. These figures are illustrative only and are not a quote.

For the first 12 months, there are no monthly loan repayments, so the household budget carries living costs while the build progresses. Council fees, insurance, and fencing still need cash, and they sit outside the loan. From month 13, standard repayments begin on the loan balance. The first repayment depends on that balance, the interest rate at the time, and the loan term, which a broker can model with the household's actual numbers.

If the townhouse is then rented, the owner would want an independent rental appraisal before relying on rent to cover the repayments. The example shows timing only. It does not show an outcome for the property or the budget.

What to do next

1. Ask a licensed mortgage broker for a written repayment schedule covering months 1 to 13 and beyond. Include how interest is treated during construction and what happens if the build runs late.
2. If a fund is involved, speak with an SMSF specialist accountant and a broker about the 10 August 2026 changes and the unit trust route. Ask the accountant about any tax treatment before acting.
3. Get an independent rental appraisal and test the budget without rent. If the numbers still work at month 13 with no rental income, you have a clearer picture to take into a conversation. You can book a free call, send an enquiry, or read more on our services and the insights blog.

General information only, not personal financial advice. Speak with a licensed adviser before acting.