Developer payment plan or mortgage — which is cheaper?
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Answer: It depends on the plan. A payment plan needs no bank and no interest during construction, but instalments are compressed; a mortgage spreads cost over 25 years at today's rates. Many buyers use the plan to handover, then mortgage the balance.
Post-handover plans (1% monthly types) look effortless but tie up cash flow for years — against a mortgage at ~3.75–4.5% they are sometimes the dearer money. We model both side by side before you sign: developer financing guide.
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