Loans 101: How To Finance Your New Home Build

Are you wondering how to finance a new home build? New build finance in NZ can seem complicated, but at Simpler, we are here to make the process simpler. So, how does financing work when building a home?

There are different options available for new home builds, which we discuss below.

Turnkey

Turnkey finance involves a fixed price contract between the building company and the buyer (you). A 10% deposit is required for homeowners (20% for investors), and you pay nothing more until the home is completed. This means that you can continue to save money while the construction is in process, however, costs can still be incurred. 

Land and Build

A Land and Build contract is similar to Turnkey, with the same deposit requirements. The difference is that you will need to pay in instalments throughout different stages of the construction process. You will pay more towards the end of the construction.  

Bank Loan

You can also get new builds home loans in NZ from a reputable bank or lender. However, they might require a 20% deposit, but some do offer loans with a deposit of 10% or 5%. To obtain this type of loan, you will need to meet the lender’s lending criteria, which can involve factors such as your credit history, any debts, your income, and more. 

As you can see, there are multiple options available for financing your new home build in NZ. The best one for your needs can depend, which is why we recommend turning to finance advisors and brokers like ourselves at Simpler. 

Understanding how to finance a new home build is key to ensuring that you can properly plan and budget your new build project. At Simpler, we can help with finding the right new build finance that suits your specific needs, budget, and requirements, allowing you to build your dream home without worrying too much about the finances. Our service is completely free (unless it is something complex), and we can offer expert advice and guidance when it comes to financing a home build. Contact us today to schedule a consultation or for more information about how we can help.