8 min read | Chatswood Property Advice | Last reviewed March 2026
Getting finance for an off-the-plan apartment in Chatswood requires planning, lender selection, and ongoing management across the construction period. Unlike buying an existing property, where you arrange a mortgage and settle within six weeks, off-the-plan finance involves a two-stage process: initial pre-approval before exchange, and formal approval close to settlement, which may be 18 to 36 months later.
How Off-the-Plan Finance Works: The Basics
Off-the-plan finance is a loan for a property that does not yet exist in its final form. You pay a 10% deposit at exchange, which is held in trust by the developer. Your loan only draws down at settlement when the building is registered. This means:
- Your deposit is at risk if you cannot settle
- Your mortgage repayments do not begin until settlement, which is a real financial advantage for buyers who need time to prepare
- Lenders will conduct a new valuation close to settlement, not based on your original contract price
Step-by-Step Guide to Finance for Chatswood Off-the-Plan Apartments
Step 1: Assess Your Borrowing Capacity
Consult a mortgage broker rather than relying on an online calculator, as you need a lender-specific assessment that accounts for:
- Your income (PAYG payslips or 2 years’ tax returns if self-employed)
- Existing debts and credit card limits (lenders assess limits, not just balances)
- Your deposit size and source
- The type and location of the Chatswood apartment you intend to buy
Step 2: Get Pre-Approval Before You Exchange
Pre-approval gives you a lender’s in-principle commitment to finance your purchase up to a specified amount.
- Pre-approval typically takes 3 to 7 business days with a mortgage broker
- It is valid for 90 days and must be renewed if settlement extends beyond that
- Pre-approval is not a guarantee of finance at settlement. Lenders will reassess your position
Step 3: Understand the Valuation Process
When your Chatswood off-the-plan apartment nears completion, your lender will commission an independent valuation.
- If below purchase price: you must fund the shortfall or negotiate with the developer
- If above purchase price: you build immediate equity because your mortgage covers less than the apartment’s market value
- Always maintain a 5 to 10% buffer in savings to cover a potential shortfall
Step 4: Choose the Right Lender for Chatswood Off-the-Plan
- Some major banks cap the LVR at 80% on off-the-plan apartments, which requires a larger deposit
- Non-bank lenders may offer higher LVRs but at higher interest rates
- Some lenders have restrictions on apartment buildings over a certain number of floors or units
- A mortgage broker with Chatswood apartment lending experience can identify lenders comfortable with specific developments
Step 5: Deposit Strategies
- Cash savings: the most straightforward option. Transfer directly from your account on exchange day
- Equity in existing property: draw on a redraw or line of credit secured against existing real estate
- Deposit bond: a bank guarantee replacing cash, typically costing 1 to 2% of the deposit amount
- Guarantor arrangement: a family member’s property used as security
Step 6: Maintain Your Finance Position Through Construction
The greatest finance risk is a change in your circumstances during the construction period:
- Job changes: Inform your broker early. Lenders will reassess employment status
- New debts: Avoid taking on new car loans, credit cards, or personal loans during the construction period
- Interest rate changes: If rates rise significantly, repayments at settlement will be higher than projected
- Pre-approval renewal: Renew every 90 days with your lender or broker
Step 7: Formal Approval and Settlement
When Billbergia issues the Notice of Practical Completion for your Chatswood apartment, act immediately:
- Notify your broker and lender immediately
- Lender commissions the final valuation
- Submit updated financial documents
- Formal unconditional approval is issued
- Settlement takes place, your loan draws down, title transfers, and the keys are yours
Chatswood Tip: Have your pre-approval in place before attending Billbergia’s launch event. Off-the-plan launches move quickly, and buyers with finance ready can make confident decisions without the risk of losing their preferred apartment.
Step-by-Step Summary
Consult a mortgage broker for a lender-specific assessment accounting for income, debts, and the specific Chatswood development.
Confirm pre-approval before the developer launch. Valid for 90 days and must be renewed throughout the construction period.
Maintain a 5 to 10% savings buffer to cover any gap between the final valuation and your purchase price.
Use a broker to find lenders comfortable with Chatswood off-the-plan apartments at your specific LVR.
Organise cash, equity drawdown, deposit bond, or guarantor arrangement for the 10% exchange deposit.
Renew pre-approval every 90 days, avoid new debts, and keep your broker informed of any income changes.
On receipt of the Practical Completion notice, immediately notify your lender to begin the formal approval and valuation process.
Frequently Asked Questions
While not legally required, pre-approval is strongly recommended before exchanging contracts. It confirms your borrowing capacity and ensures you are not committing your deposit to a purchase you cannot fund at settlement.
Begin the formal approval process as soon as you receive the Notice of Practical Completion from the developer, typically eight to twelve weeks before settlement. Allow at least 3 to 4 weeks for formal approval, valuation, and documentation.
Higher rates at settlement will increase your monthly repayments beyond initial projections. Stress-test your borrowing capacity against rates 1 to 2% higher than current rates before you commit to an off-the-plan purchase.
Yes. Equity in an existing property can be drawn via a line of credit or redraw facility to fund the 10% exchange deposit. Speak to your mortgage broker about the most efficient structure for your situation.
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This article is for general informational purposes only and does not constitute financial or mortgage advice. Lending criteria, interest rates, and lender policies change frequently. Always consult a licensed mortgage broker or financial adviser before making any borrowing decision.
