What lenders look for in a new build loan
Securing finance for a new build is about presenting a clear, low-risk case to the lender. We help you package your application to tick all the right boxes.
New Build Finance
Building a new property is an exciting milestone, but navigating the finance can be complex. We make it easy by structuring a funding solution tailored to your specific project and goals.
Financing your new build
Building a new home is an exciting opportunity to get exactly what you want, but navigating construction finance can be complex. We make it easy by structuring a loan tailored to your project, helping you maximize low deposit options and discounted interest rates.
In a dynamic property market, building fresh is one of the smartest ways to secure a modern, energy-efficient home tailored perfectly to your lifestyle or investment goals. However, navigating the complexities of construction finance is often the biggest hurdle that trips up aspiring buyers and seasoned investors alike.
Standard home loans from your main bank are designed for existing properties, not for multi-stage construction projects. They often involve complex approval criteria, rigid progress payment structures, and strict valuation requirements that can choke your cash flow if not managed correctly. Trying to fit a unique building project into a simple, off-the-shelf mortgage product can lead to missed opportunities, construction delays, and unnecessary stress before the foundation is even poured.
That's where tailored advice from a mortgage adviser becomes a game-changer. We understand the full scope of your project, including the land purchase, building contract structures, contingency buffers, and final "as-if-complete" valuations. This allows us to approach a network of bank and non-bank lenders with a compelling proposal. We present your project with a solid financial plan, ensuring you get the flexible, purpose-built funding you need to succeed.
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A fixed-price building contract
Lenders love certainty. A fixed-price contract protects both you and the bank from unexpected material and labour cost overruns during the build.
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Sufficient deposit and equity
Thanks to New Zealand's new build LVR exemptions, you may require a much smaller deposit than you would for an existing property. We will map out how to leverage your savings or existing equity.
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Registered Master Builder or equivalent
Lenders want to know the build is in safe hands. Using a licensed building practitioner with a solid industry guarantee (like a Master Build or Halo guarantee) strengthens your case significantly.
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A realistic contingency fund
For progress-payment builds, lenders usually require a 10–15% cost contingency built into the loan structure to handle any unforeseen council or construction variations.
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An "as-if-complete" valuation
Banks will require a registered valuer to assess your building plans and section to estimate the final value of the property, ensuring the project's end equity stacks up.
Important considerations for your new build
Before you sign a contract with a builder or developer, having a clear financial strategy is crucial. Here are key things we'll work through together.
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Turnkey vs. progress payments
We'll help you decide which pathway fits your cash flow. Turnkey allows you to pay a deposit upfront with nothing more to pay until completion. Progress payments mean drawing down the loan in stages as milestones are hit.
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Unlocking low-deposit exemptions
New builds are exempt from standard bank lending restrictions. This opens the door to 5% deposit options for eligible first-home buyers and 10% deposit options for next-home buyers and investors.
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Discounted interest rates
Many New Zealand banks offer heavily discounted "green" or new build interest rates, alongside generous cash-back incentives that can save you thousands of dollars over the first few years.
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The power of pre-approval
In a competitive market, having your construction finance pre-approved allows you to negotiate with developers and lock in your preferred section or package with absolute confidence.
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Minimising holding costs
If you opt for a progress-payment build, structuring your loan on an interest-only basis during the construction phase keeps your outgoings manageable while you wait for the keys.
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