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Building or Renovating
Building your dream
This is your opportunity to design and build your own home. A New Build loan will provide you with the finance to build, or for major renovations.
- We offer 12 months conditional approval, so you have plenty of time to find the right section and plan your build
- The loan is interest-only during the construction period, helping you to reduce your outgoings while you build
- A repayment ‘holiday’ of up to 12 months can help manage your cash flow during the build – especially handy if your trying to build while paying rent or managing an existing mortgage at the same time
- As little as 10% deposit is required for fully managed new build, wether an off-plan build or self build.
Types of build loans
This is a single fixed-price contract with your builder where each part of the build, from concept to completion, is detailed and specified.
The finished home will be ready to live in, including:
- major landscaping (fences, retaining walls)
- drives and pathways
- decorating (painting, floor coverings).
Also a single fixed-price contract with your builder, this time specifying a property or renovation completed to a liveable and compliant condition. You will be responsible for completing some finishing work yourself or may have other contracts in place. The minimum deposit required for a build only contract is usually 20%.
A partial contract involves a range of sub-contracts managed by you or a project manager. It may have a labour only component with contractors and typically includes relocated or kit-set homes. In this situation, a registered valuation is required for the expected value of the property once on site and completed. The minimum deposit required for partial contract is usually 20%.
How a new build loan works
- You will need to arrange a property valuation to estimate the value of your home once completed.
- We will then review the valuation and let you know how much you can borrow. Once you have a contract with your builder, we can discuss it with you and agree how each payment needs to be made, usually directly to your builder.
- As the building begins, the construction loan is paid in stages. Your contract with the builder may set out how much is required at each stage, with the work inspected and certified at each stage.
- During the build process you only pay interest on the money already drawn down. Or you may prefer to capitalise the interest until the build is finished, so there is no need to start repaying the loan itself until the project is finished.