Sunset clause
In QLD, there is no equivalent statutory sunset-clause reform identified, so protection depends on your contract terms. Read the sunset clause carefully and seek legal advice before you sign.
Costs
Off-the-Plan Risk Calculator
Model the cash risks unique to buying a new build before it is complete.
The property
First home buyer
Type of home
Pick house and land unless the home is in a strata development with shared common property, such as a driveway.
Your deposit
$70,000 of the contract price.
Deposit type
The build
Market move during construction
The property is valued at the contract price at settlement.
How much of the construction is finished at the contract date.
Cash at risk at settlement
No shortfall
On these figures the bank's settlement valuation supports your planned loan, so no extra cash is estimated to settle. This is an estimate only.
- Valuation shortfall
- $0
- LMI expected at your deposit
- $13,860
- Loan to value at settlement
- 90.0%
Pre-approval may expire before completion
Your finance pre-approval will likely expire before the build is finished. Re-approval uses settlement-day rates and serviceability rules, so leave room in your budget for a higher repayment.
An off-the-plan duty saving may apply
Buying off the plan in this state may lower the stamp duty by around $16,300 compared with a completed home, because duty is assessed on the value at contract date.
Get legal advice before you sign
Estimate only. Off-the-plan carries risks no calculator can fully model. Get legal advice and read the contract's sunset and defect clauses before you sign.
Settlement valuation shortfall
The bank lends against the value at settlement, not the contract price, at the loan-to-value you planned (or 80% with a bigger deposit).
- Settlement value
- $700,000
- Deposit cash
- $70,000
- Required loan
- $630,000
- Max bank loan (90% of value)
- $630,000
- Cash shortfall
- $0
Lenders mortgage insurance of about $13,860 is already expected at your deposit size, so it is not counted as at risk.
Off-the-plan stamp duty
Some states assess duty on the value at contract date, before construction. Rules for QLD.
- Duty on a completed home
- $24,525
- Off-the-plan dutiable value
- $280,000
- Off-the-plan duty
- $8,225
- Estimated saving
- $16,300
Estimate only. The state revenue office makes the final determination.
Your deposit and the wait
What sits at risk during the build, and what a late finish costs.
Deposit at risk
Paid as a cash deposit.
- Deposit amount
- $70,000
- Cash outlay
- $70,000
- Exposure if developer insolvent
- $70,000
Completion delay cost
24 month build window, delay included.
- Extra rent (delay)
- $12,000
- Base monthly repayment
- $4,276
- If rates rise 0.5%
- +$215 a month
- If rates fall 0.5%
- -$211 a month
- Total build window
- 24 months
Your build window is likely to outlast a 60-90 day finance pre-approval. Budget for re-approval at settlement-day rates.
Other risks to weigh up
Not in the numbers above, but worth checking in the contract.
Developer insolvency and track record
If the developer fails before completion, your deposit and the project itself can be at risk. Before you sign, it is worth checking:
- the builder's and developer's licence and registration
- past completed projects and their reputation
- how the deposit is held, and whether a bank guarantee or trust applies
Build defects
New builds can have defects. In QLD, statutory building warranty typically covers major defects for around 6.5 years, and minor defects for about 1 year, administered by QBCC. Consider an independent inspection at handover.
Finance pre-approval expiry
Pre-approvals usually last 60 to 90 days, while a build can run far longer. Re-approval at settlement is assessed against settlement-day rates and serviceability rules, so leave room in your budget in case repayments are higher than today.
Estimates use your inputs, lending at your planned loan-to-value at settlement (or 80% with a bigger deposit), indicative LMI rates and a 7.2% rate over 30 years for repayments. Valuers, lenders and the state revenue office make the final calls, and contract terms vary. Data as of May 2026.
Keep going
Tools people usually open after the Off-the-Plan Risk Calculator.
Negative Equity RiskIf the market dips, what happens to your equity? Compare Help to Buy, traditional 20%, and 5% Deposit Scheme side by side. Honest downside math.Stamp Duty CalculatorPer-state estimate with FHB concessions auto-applied, foreign surcharges, total upfront.Borrowing PowerHow much you can borrow, and how government schemes extend your capacity.True Cost CalculatorHidden costs of house and land: site works, landscaping, fencing, coverings.Auction Max Bid CalculatorOpen on your phone at the auction. Cash + loan + state = absolute max you can bid, stamp duty, LMI and buffer all included.Builder Quote ComparisonGot 2-3 builder quotes? Side-by-side standardiser shows which is really cheapest after filling every exclusion.LMI CalculatorYour LMI cost, upfront vs capitalised, and how FHG or Help to Buy can waive it.Grant StackerEvery federal and state grant, concession and scheme you may be eligible for.
Off-the-plan risks explained
When you buy off the plan, your loan is approved against a valuation made close to settlement, once the build is finished. If values fall during construction, that settlement-day valuation can come in below your contract price. The bank lends a percentage of the lower figure, so you may need extra cash to make up the difference and still complete the purchase.
A deposit bond is a guarantee a buyer can use in place of a cash deposit. Instead of locking up the full deposit for the whole build, you pay a fee, often around 1.2% a year of the deposit amount. The deposit itself is still payable at settlement, and your exposure if the developer becomes insolvent is the same as a cash deposit. Fees vary by term and credit assessment, so get a quote.
Finance pre-approvals usually last 60 to 90 days, while an off-the-plan build can run well beyond that. It is common to need re-approval before settlement, which is assessed against settlement-day interest rates and serviceability rules. Leave room in your budget in case repayments are higher than when you first signed.
It depends on the state. Some states assess duty on the value at the contract date, before later construction is added, which can reduce the duty compared with a completed home. Others have no off-the-plan concession and charge duty on the full contract price. Several concessions are temporary or expiring, so the saving shown here is an estimate, and the state revenue office makes the final determination.
A sunset clause sets a long-stop date by which the development must reach a milestone, such as registration of the plan or completion. If that date passes, the contract can be ended. Some states now require the buyer's written consent or a court order before a developer can rescind. Sunset terms and protections vary by state and contract, so read the clause carefully and seek legal advice before you sign.
Data verified May 2026
For illustration only. This tool does not constitute personal financial advice. Grant amounts, caps, and eligibility rules may change. Federal scheme caps shown are for capital city/regional centres and may differ for other areas. Always verify with your state revenue office and Housing Australia, and consider seeking independent financial advice before making decisions.