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 existing 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 choose 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

Signature Homes has partnered with One50 group to provide financial services to our clients, ensuring they have a smooth and hassle-free build process right from the word go. With over 18 years’ experience providing a wide range of services across New Zealand, and many years spent working in the property development and construction industries, One50 has the knowledge and skills to help you and your family into your new home, or help you add to your investment portfolio.

One50 has identified the four potential financial positions of Signature Homes’ key clientele and has tailored packages to suit each type of borrower.


Do you and your partner (or even a friend) have a combined $65,000 or more in Kiwisaver and savings, and a combined income of $90,000 or more? If so, owning a brand-new Signature Home could be closer than you think. Even if you’re not quite at $65,000 yet, a friend or family member could provide the equity you need to get into the property market with little risk to them. Find out more about how One50 can help you into your first home (and pay it off faster) here.


You already own a home – perhaps you’ve even bought and sold several properties over the years as your family has grown – but none of them have ever been quite right, so you’ve decided it’s time to stop compromising. You’re ready to build a brand-new Signature Home to suit your lifestyle, exactly to your specifications. Find out more about how One50 can help you finance your dream home here.


Have you been thinking about investing in property but you aren’t sure where to start? You may already own at least one house and be looking for the next step in your financial planning journey or retirement plan. Investing in property has been a proven way to build wealth over a long-term period and could be a key step on your way to financial freedom later in life. Find out more about how One50 can help build your investment portfolio here.


Could you be sitting on a goldmine? Many homeowners don’t know the value and opportunities located in their own backyards, and how straightforward Signature Homes makes the entire subdividing process. Discover how One50 can help you unlock the value of your unused land with tailored financial solutions here.

If you are thinking of Building you can contact One50 here or give them a call on 0800 80 20 88 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.


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


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