Construction and Building Finance


Financing a new build with Construction Finance - it's easier than you think

Many people think they can’t afford to pay both rent or another mortgage and a loan for a new home while it is being built, but there are options with Building Loans and Construction Finance. Construction Finance is offered by most banks and mortgage brokers. There are some variations in specific offerings but generally it can be secured against the build, the interest rate is the same or close to the market mortgage rates, and is specifically used to fund the building of a new home. The main difference between Construction Finance and a standard mortgage is that the full amount of the loan isn't paid out all at once, with Construction Finance progress payments are made through the build of your home, so you won't pay interest on the full amount until the home has been completed.

There are different requirements in terms of deposits for newly built homes that are being built, while banks generally require a minimum 20% of the value of an existing property as a deposit, the requirement is less for newly built homes, this is why you could secure a new Signature Home with less deposit than if you were to purchase an existing property. 

Depending on the price of the new home or house and land package, and the region, there are many KiwiSaver advantages to building a new home as opposed to buying a an exisitng home. This includes the ability to use some of your KiwiSaver for your deposit, and potential access to a KiwiSaver HomeStart Grant .

There are many options available to you when you are considering building new and it is important for you to chosse a company or bank that understands the construction process, and can work with you through the process. We have a number of relationships with companies that can help you and most of the major banks also have Construction Finance solutions.


One50 Group - Expert Help for Signature Homes Clients

One50 Group have experienced Mortgage Brokers who can very quickly help you understand your potential build budget. They are familiar with our processes and are experts in Construction Finance, priding themselves on a no-nonsense approach focused on results, and giving our clients a priority service in terms of processing requests.

If you are thinking of Building you can contact them here of give them a call on 0800 80 20 88, tell them your are a SIgnature Homes client and they can talk you through your finance options over the phone.


NewBuild Finance Brokers

NewBuild Finance is a preferred supplier of Signature Homes and offers a solution funded by a bank at bank rates, and can fund up to 95% of the finance required to build a new home*. The client can then settle the loan up  front (with their deposit paid on the land). No further repayments need to be made on the loan until the new home is built. Banks often won’t use equity from an existing home to fund a new home loan. This doesn’t work for clients who want to keep their current home as an investment, or keep it long enough to avoid needing to move their family twice. NewBuild is able to treat the existing home as a rental, and can fund up to 100% of the land and build using only equity in the existing home.

Also, with NewBuild any rental income on the existing home can immediately be used to offset the loan. The NewBuild approach also allows an investment property to be 100% geared for tax purposes. Banks are normally unable to do this for a new home.

Do you qualify?

Use NewBuild's quick and easy Loan Qualifying Calculator to see if you qualify for Construction Finance to build your new home.

Building From 5% Deposit

For more information on Construction Finance and Building you Home with as little as 5% Deposit order our "Building with a 5% Deposit" brochure and we will send you a physical or electronic copy.


Most of the major banks also have Construction Finance or Building Loan Solutions, and have more information available on their websites:

TSB Building Loan

KiwiBank Building Loan

ANZ Building Loan

ASB Building Guide

Westpac Construction Finance

If you would like to know more about Construction Finance and how it could help you build your next home talk to your local Signature Homes team or stop by one of our Showhomes today.

*Lending Terms and Conditions apply


Contact us about Construction Finance