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Q: Are ‘Off the Plan’ purchases off the table?

A: Not necessarily, but you have to carefully weigh up your options.

Whilst an ‘off the plan‘ purchase is a strategy you may wish to consider for your next property purchase, due to the significant changes to lending policy across the board, we feel that it now carries greater risk.  Particularly if you’re planning to purchase an investment property ‘off the plan’.

When you exchange on an ‘off the plan’ contract, you are effectively saying…

"Yes. When the property is complete, I can afford to buy the property. I'm also confident a lender will lend me the money I need at the time.

Can you say this, as someone purchasing ‘off the plan’?


Regardless of whether you have a pre-approval in place at the time of exchange, this statement is becoming increasingly difficult to say.

Over the last few months, there have been SIGNIFICANT changes in the way lenders assess a borrower as suitable (or unsuitable).

There have also been SIGNIFICANT changes as to how much lenders are happy to lend, particularly to property investors.

Lenders have changed their policies so much over the last few months and we can’t be certain how much further they will go to satisfy APRA.

If you’re considering an ‘off the plan’ purchase or are already committed to one, it’s important to talk to us sooner rather than later.

It’s important to understand all your options – as there might be things we can do NOW to minimise any risks at settlement.


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