17 Jun 2021

Will you Accept a Display Home as Security for a Mortgage Loan?

Display homes allow potential homeowners to visualise what their finished home may look like. They also allow homeowners to alter the existing floor and design plan to make the house a better fit for their needs. There are pros and cons to purchasing a display home.


Pros of display homes

  • Display homes are generally well-maintained. People do not live in them, meaning they are in better shape when purchased. 
  • Display homes may have features that other customised properties do not. The builder may have installed extra features to use as a demonstration to entice buyers or developers may have used them to show what the higher-end, more expensive building materials are like in the more expensive houses.
  • Display homes may be cheaper than identical houses, especially if they were built a while ago. Developers build the display house first as a showcase for future properties. Once the development is complete, they will sell the display home to finance other housing developments.
  • The building process is stressful. If you buy a display home, you don’t have to wait until the house is built. You can move in.


Cons of display homes

While there are many advantages of display homes, there are also cons you should be aware of. 

  • When you buy a display home, you do not get to choose the location of the house.
  • Display homes are used for demonstration purposes, meaning they may not have all the features you want in a home. It may not even be built to the same standard as the other homes in the village because the display home needs to be completed before additional development can begin.
  • Housing developments can take years to complete, meaning display homes have been used for years before they are available to buy. 


There are a lot of risks associated with using display homes as loan security. Unlike many lenders, Mortgage House may be willing to use a display home as security for a mortgage. However, you should still consult with our team of experts to decide if purchasing a display home is the right financial decision for you. 

Fast track your home loan
Apply Online Book a Call Back
133 144

Why Choose Mortgage House?

Award Winning