Building Your Dream Home
Can’t find a home that perfectly fits your vision? Building your own could be the answer. While it’s an exciting journey, it can also feel overwhelming. We’re here to simplify the process, helping you understand the costs, secure the right loan, and manage the build with confidence.
What Costs Are Involved?
Building a home involves more than just construction. Here’s a breakdown of the key costs you should be prepared for:
- Land Purchase: If you don’t already own a plot, this is your first major expense.
- Professional Fees: This includes fees for architects, lawyers, and valuers.
- Council Consents: You’ll need both Resource Consent (to ensure your project doesn’t negatively impact the area) and Building Consent (to ensure your plans meet safety and building codes).
- Utility Connections: Fees for connecting your home to water, power, and gas.
- Construction: The largest cost, covering the build itself.
- Insurance: You’ll need Builder’s Risk Insurance to protect against damage during the construction phase.
Understanding the Construction Loan Process
A construction loan is different from a standard mortgage. Instead of a lump sum, the money is released in stages as your home is built. This staged approach ensures the bank’s investment aligns with the progress of your project.
To get a construction loan, you’ll need to provide your lender with several key documents, including:
- Council-Approved Plans: Both your house plans and building consent.
- Fixed-Price Building Contract: A signed contract with your builder that details the project’s costs and stages.
- Registered Valuation: An estimate from a valuer of what your home will be worth once completed.
How Much Can You Borrow?
Most lenders will approve a construction loan for up to 80% of your home’s total completed value. In some cases, you may be able to borrow up to 90% if the home is for you to live in and you have a fixed-price contract.
We also know that building projects can have unexpected costs. To prepare for this, banks often include an additional 15% buffer in your loan approval to cover any potential overruns, giving you peace of mind throughout the build.
Ready to start building your dream home? Let’s talk about getting the right finance in place.
Select the Right Lender
We engage with multiple lenders to give you the flexibility to select the one that perfectly suits both your financial needs and your project goals.
Maximize Your Loan Approval
We focus on securing the maximum loan amount possible, ensuring you won’t experience a cash shortfall at any point during your home’s construction.
Become Mortgage-Free Sooner
After your home is completed, we offer expert advice on how to structure your loan to pay down the principal faster, reducing your mortgage over time.
Maximize Your Loan Approval
We focus on securing the maximum loan amount possible, ensuring you won’t experience a cash shortfall at any point during your home’s construction.
Choose a Bank that Fits Your Project
Each bank has a unique approach to construction loans. We assess your needs and building contract to help you pick the bank that aligns best with your project.