Construction & New Build Loans
Finance for a new build or a construction project, including progress payments and a deposit that is often lower than a standard purchase.
A build loan is released in stages, not as one sum on settlement day. The lender, the builder, and your solicitor all have to agree on what those stages are before the slab goes down.
Many lenders accept a smaller deposit on a newly built home than on an existing one. A figure of 5–10% comes up often. It is not automatic, and a Kāinga Ora First Home Loan is a separate test with income and price caps.
What the lender wants before they commit
A signed build contract, plans, and a specification. A fixed-price contract is easier to lend on than an open-ended one. If the price can move, the lender will want to know who pays the difference.
Your deposit, your income, and the section — owned, or being bought with the build — are assessed together. A pretty plan with no section title is not an application.
Progress payments
Funds are drawn at milestones the lender sets, commonly foundation, frame, lock-up, and completion. The builder invoices, the work is checked, and the lender pays that stage. You do not hold the whole loan in your account.
Delays happen when an invoice arrives and the documents do not match the contract. We stay in that loop with the builder and the solicitor so a drawdown is not sitting in a queue because a page is missing.
Turnkey and house-and-land
Buying a finished new build from a developer is simpler than managing a build yourself, and lenders often treat it more like a purchase. House-and-land packages sit in between. We say which one your contract actually is, because the deposit rule follows that.
First home buyers use this page alongside the first-home page. The KiwiSaver withdrawal still has to be timed to settlement or to the first drawdown, depending on the contract.
Get started today
Free consultation — no obligation.
Frequently Asked Questions
- How do progress payments work?
- The lender releases money in stages — often foundation, frame, lock-up, and completion — after that stage is invoiced and checked. You do not receive the full loan on day one.
- Can I get a lower deposit for a new build?
- Many lenders accept 5–10% on a newly built home. It depends on the lender and the contract. A Kāinga Ora First Home Loan is a separate product with its own income and price caps.
- What if the build runs over budget?
- Someone has to fund the gap. We want that agreed before the loan is documented, not when the frame is up.
- Do you only do owner-occupier builds?
- No. First homes, spec builds, and investment new-builds are all lending work. A large subdivision is a commercial conversation as well as a mortgage one.
Ready to get started?
Our advisers can travel to you for an in-home meeting or arrange a virtual catch up. We're happy to work around your schedule.