📌 Key Takeaways
- Ready properties can be mortgaged immediately with standard down payments (typically 20-25%); off-plan properties usually require around 50% down.
- Off-plan purchases are often financed partly through a developer payment plan during construction, with the mortgage kicking in closer to handover.
- Ready properties can be valued and inspected immediately, giving banks more certainty and buyers faster access to financing.
- Off-plan carries construction and developer risk that ready property doesn't, which is reflected in stricter bank lending terms.
- Your choice should depend on your available cash, risk tolerance, and how soon you need to move in or start earning rental income.
Key Differences at a Glance
| Factor | Off-Plan Property | Ready Property |
|---|---|---|
| Typical minimum down payment | ~50% | ~20-25% |
| When mortgage typically starts | Often closer to or at handover | Immediately at purchase |
| Valuation certainty | Lower — based on projected value | Higher — based on the actual, existing asset |
| Main risk | Construction delays, developer risk | Minimal construction risk |
| Typical price point | Often lower per sq. ft. at launch | Reflects current completed market value |
How Off-Plan Financing Works
Off-plan properties are usually sold under a developer payment plan, where you pay a percentage of the price in instalments tied to construction milestones (for example, 10% on booking, further instalments during construction, and a final instalment on handover). Because the Central Bank caps mortgage financing on off-plan units at a lower loan-to-value (commonly around 50%), many buyers use a mix of the developer payment plan and a mortgage that's arranged closer to or at handover, once the unit legally exists as a completed, valuable asset.
Some banks offer specific off-plan mortgage products that can start earlier, but terms and availability vary significantly — this is an area where speaking to a broker who tracks current bank offerings is especially valuable.
How Ready Property Financing Works
Ready (completed) properties can be valued immediately by an independent surveyor, giving the bank clear, current market evidence of the property's worth. This lower uncertainty is why ready properties qualify for the standard, lower down payment tiers (commonly 20-25% for a first home) and why the full mortgage process, outlined in our step-by-step application guide, can move forward right away.
Pros and Cons of Each
Off-Plan:
- ✅ Often lower entry price and flexible developer payment plans
- ✅ Potential capital appreciation by the time construction completes
- ❌ Higher upfront down payment requirement (~50%)
- ❌ Construction delay and developer risk
- ❌ No rental income until handover
Ready Property:
- ✅ Lower down payment (~20-25%) and immediate mortgage financing
- ✅ You can inspect the actual unit before buying
- ✅ Immediate move-in or rental income potential
- ❌ Reflects current market pricing, with less room for construction-period appreciation
Which Suits You?
If your priority is a lower initial cash outlay through mortgage financing and you want to move in or start earning rent quickly, a ready property is usually the more straightforward, mortgage-friendly route. If you have significant cash reserves, a longer investment horizon, and are comfortable with construction timelines, off-plan can offer an attractive entry price and payment flexibility — provided you carefully vet the developer's track record for on-time delivery.
Not sure which fits your budget? Use our mortgage calculator to compare scenarios, or speak with a consultant for a personalized recommendation.