Most investors who choose to build a new property run into the same cash-flow squeeze: construction draws on the loan start almost immediately, yet no rental income arrives until the keys are handed over. That gap, which can run for the better part of a year, is the problem HomePay is designed to address.
The cash-flow problem with building
When you take out a standard construction loan in Australia, funds are released in stages tied to milestones on the build, typically slab, frame, lock-up, fit-out, and completion. A construction loan is a short-term, specialised loan used to fund the building of a new property. Unlike standard home loans, it is paid out in instalments, called progress payments, aligned with key stages of construction such as slab, frame, lock-up and completion. With a progress payments construction loan, interest is only charged on the portion of the loan that has been drawn down, not the full approved amount. That sounds manageable at first, but the interest bill climbs steadily with every drawdown.
Over the past decade, average house construction times have risen by 57%, and apartment completion times have blown out by 65%. The average home build in Australia takes between 6 to 12 months, with certain stages like framing and internal fit-out requiring more time. That means an investor who is still paying rent or a mortgage elsewhere faces months of dual holding costs before the property earns a cent.
What HomePay actually does
HomePay is a product offered through Elite Wealth Creators that removes monthly repayments for the first 12 months of the construction period. There are zero monthly payments during that window. Once construction is complete and the 12-month period ends, standard repayments begin. That is the full description: zero monthly payments for 12 months during construction, then normal repayments kick in.
It is not an interest-only arrangement, and it is not a partial deferral. The payment obligation is simply deferred for the construction phase, allowing investors to hold their cash rather than service a loan on a property they cannot yet rent out.
A few things to understand clearly about how it is structured:
- It applies during construction only. Once the build is complete and the 12-month period concludes, repayments move to the standard schedule agreed with the lender. A licensed broker connected through EWC will explain the specific terms that apply to your situation.
- The property finance is coordinated by EWC. EWC sources the property and coordinates the finance referral to a licensed broker. The broker holds the credit licence and is responsible for the loan. EWC does not provide mortgage or credit advice.
- HomePay is separate from the construction loan mechanics. The underlying loan still uses progress drawdowns aligned to build milestones; HomePay addresses the repayment schedule during that period, not the drawdown structure itself.
The trade-offs to weigh
For an investor, the appeal is straightforward: the months between signing a building contract and receiving the first rent cheque are the most cash-flow-intensive period of any new build. Removing monthly repayments during that window can make a new build financially viable for buyers who would otherwise need a larger cash buffer sitting idle.
There are real costs to consider on the other side of that equation, though.
Deferred costs do not disappear. Any interest or costs that accumulate during the deferral period will be reflected in your loan balance or repayment structure once the standard schedule kicks in. This is something to work through carefully with a licensed broker before signing.
Rental income is not guaranteed. Once construction finishes and repayments begin, the property needs a tenant. Vacancy periods happen. An independent rental appraisal for the specific property and suburb, obtained before signing any contract, is worth doing. Rental yields and vacancy rates vary significantly by location and property type, so realistic income modelling matters.
Construction timelines vary. The Australian construction sector faced a challenging period shaped by economic pressures, rising costs, and persistent labour shortages. While the broader economy showed signs of resilience, the construction industry continued to grapple with high borrowing costs, supply chain disruptions, and project delays. If a build stretches past 12 months due to weather, trade availability, or approvals, understanding what happens beyond the HomePay window is essential. Discuss this with both the builder and the broker.
Tax treatment is complex. Interest costs during construction, and how they are treated for tax purposes once the property produces income, is an area where a qualified tax adviser or accountant needs to be involved. EWC does not provide tax advice. When building an investment property in Australia, the tax treatment of loan interest and building costs changes as the project progresses. Understanding these rules helps investors plan their deductions correctly. Interest on a construction loan may be deductible if the property is being built with the genuine intention of producing rental income once completed. That is a general description; the specific deductibility of deferred costs under a HomePay structure is a question for a registered tax agent.
A worked example
Consider an investor purchasing a house-and-land package priced at $620,000, with a deposit paid and a construction loan for the build component. Under a standard construction loan, progress draw interest starts accumulating from the slab stage and builds through to completion. If the build takes 10 months, the investor carries 10 months of rising loan costs with no rental income to offset them.
Under HomePay, those 10 months fall within the zero-payment window. The investor holds their cash, the build completes, the property is leased, and standard repayments begin. In illustrative terms, if monthly repayments after completion were $2,800, a 10-month HomePay window means $28,000 in repayments that did not need to be funded from savings or other income during construction. That figure is illustrative only, and actual numbers depend on loan size, rate, and structure, all things a broker will calculate for your specific situation.
This does not mean HomePay is free. The deferred amounts are factored into the overall loan structure. The benefit is timing: the cash stays with the investor during the period it is most needed.
What to do next
If you are weighing up a new build investment and want to understand whether HomePay suits your situation, three steps make sense:
- Talk to a licensed broker referred through EWC about how the HomePay repayment deferral would be structured for your specific loan size, income, and timeline. The broker holds the credit licence and can model the actual numbers.
- Get a qualified tax adviser or accountant to review the tax treatment of deferred construction loan costs and how they interact with your overall investment property deductions.
- Review the property and the rental market with a realistic eye. Ask for an independent rental appraisal on any property you are considering, and factor in potential vacancy periods when modelling your cash flow.
For more on how EWC sources and coordinates new build investment properties, visit /services. To have a conversation about whether HomePay and a new build investment fits your circumstances, book a free call or visit /contact.
General information only, not personal financial advice. Speak with a licensed adviser before acting.