Build a Signature Home from only 5%* deposit with NewBuild Residential Construction Lending
Due to the security and reliability of Signature Homes’ market leading guarantees, Sovereign Home Loans (part of ASB Bank and the backers of NewBuild Finance) can offer Signature Homes clients their specialised home loan services for building their new home through NewBuild Residential Construction Lending, specialists in construction finance.
There are two main reasons that people who would like to build a new home choose not to:
- Banks sometimes don't understand the building process and treat the request for finance in the same way they treat a normal mortgage, and there are differnces
- Many people think they can’t afford to pay both rent where they currently live and a loan for a new home while it is being built.
NewBuild Finance can help with both of these issues. There are now different requirements in terms of deposits for new homes that are being built, while banks generally require a minimum 20% of the value of the property as a deposit, the requirement is less for newly built homes, this is why you could secure a Signature Home from as little as 5% deposit, lending and credit criteria still apply. New Build can also help Signature Homes clients manage the costs of the build and additional living costs while the home is being constructed, there are options available but that is why it is important to discuss the options with Construction Finance specialists, if your bank is unable to help.
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.
NewBuild 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.
What NewBuild offers:
- A standard bank loan through Sovereign/ASB
- 15 years experience in the new home loan sector.
- Lending criteria unique to NewBuild. This specialised approach helps more clients get approval to build a new home.
- Lower deposit builds on a case-by-case basis, with as little as 5% deposit* over house and land (we can also use equity in an existing house).
- If you own a home and want to retain it as an investment, or retain it long enough to start your build (so you only have to move once), you may be able to use your home as security and fund 100% of your land and build.
- A fully managed construction loan, taking much of the stress of building away.
- Unlike most banks, who require you to pay as much as several thousand dollars in valuation fees, NewBuild charges a one off fee to fully “project manage” the financial aspects of your loan for $1,000. This makes your building loan less expensive in most cases.
- You will have the option of not making construction loan interest payments until your home is completed, so you don’t have to pay rent and a construction loan at the same time. Your interest rates can be negotiated on completion, and Sovereign will often contribute to your legal costs.
- You will have additional funding set aside to cover unexpected costs along the way, but whatever funds you don’t use become yours at the end of your build to do with as you wish. These options could include buying new furniture, or reducing your loan.
Talk to your local Signature Homes team about NewBuild Construction Finance today.