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Non-bank mortgage manager So Money has announced a partnership with construction platform HomePay, offering borrowers up to 12 months of paused repayments on land and construction loans while their home is being built.
Under the arrangement, repayments due during the construction period are capitalised into the loan balance rather than paid from the borrower's pocket, with the loan amortising over its remaining term once repayments commence.
Significantly, the pause feature carries no rate loading or term extension: the loan is priced at the same interest rate, and written over the same loan term, as the equivalent standard So Money construction loan.
The offering targets what So Money describes as the single biggest friction point in construction lending — the period of nine to twelve months in which borrowers pay rent or an existing mortgage while simultaneously servicing progressive drawdowns on a construction loan.
“Every broker has had a construction scenario fall over not on serviceability at completion, but on cashflow during the build,” said Zachary Su, founder of So Money. “Clients can afford the finished home; what they can't always absorb is paying for two roofs at once for a year. This structure removes that period entirely.”
Su said the product was designed for renters building their first home, upgraders who want to remain in their current property until handover, and investors seeking to align repayments with the commencement of rental income.
“For an investor, they can target starting repayments when the property is complete and capable of earning rent. For a first home buyer, they keep paying their rent as normal but can pause their build and land repayments for up to 12 months, removing the financial pressure of double payments during construction. It's a materially simpler conversation for brokers to have,” he said.
Su noted that the process is simple, with the paused repayments added to the loan balance and future repayments calculated on that amount. “This isn’t a discount — it’s a cashflow structure designed to give clients more control over how they manage their money during construction. Brokers should present it that way, and we’ve built the disclosure into every quote so clients can see their expected repayment after the pause upfront,” he said.
Importantly, that flexibility continues throughout the build. Clients have access to an Offset facility during construction. And if their home is completed before the end of the eligible 12-month pause period, they remain in control — they can elect to commence repayments early and reduce the amount of interest added to the loan, or continue using the remaining pause period to preserve cash flow. For investors in particular, that ability to maintain liquidity after completion can be highly attractive.
The product is available through So Money's accredited broker network for eligible construction loans with HomePay Accredited Builders – each independently reviewed across their financial health, build times & quality on the ground. Standard upfront costs, including valuation and application fees and the borrower's deposit, continue to apply and are not capitalised.
So Money, which operates solely through the third-party channel, was named Mortgage Manager of the Year at the Australian Mortgage Awards in 2024, 2025 and 2026. Brokers can contact their So Money BDM for accreditation and scenario support.
Disclaimer:
Product features, policy settings and pricing are current as at the date of publication and may change without notice. This communication is intended for licensed mortgage brokers and finance professionals and is general information only. It is not financial, taxation, legal or credit advice, and does not take into account any person's objectives, financial situation or needs. Lending is subject to credit assessment, eligibility criteria and approval, including responsible lending obligations under the National Consumer Credit Protection Act 2009 (Cth). Terms, conditions, fees and charges apply. Interest continues to accrue during any repayment pause period; capitalised repayments and any financed risk fee are added to the loan balance and will increase the repayments payable after the pause period and the total interest payable over the life of the loan. Loan amounts, LVRs and product features described are maximum or indicative positions, are subject to lending criteria, and may not be available in all circumstances. The repayment pause feature may not be suitable for all borrowers, who should obtain independent financial, legal and taxation advice before proceeding. Issued by Lingqing Capital Pty Ltd trading as So Money (ACL 504917).
This article was produced in partnership with So Money
