Buying guide
How does finance work when building a new home
Finance when building a new home can be complex - here’s everything you need to know.
AI summary
Financing a new build involves a construction loan, which differs from a standard mortgage. Funds are released in stages (progressive drawdowns) to pay builders as work progresses, and you can often make interest-only repayments during construction.
To manage potential cost overruns, it's vital to have a contingency fund of at least 15%. Be prepared for project delays and have a lawyer review your building contract before you begin. Choosing an experienced, registered master builder is also essential.
How do construction loans work?
.jpg)
Finance for new builds works a little differently than your average home loan.
Managing costs during a new build
Choosing your builder
Author
Discover More
Historic home saved from demolition and turned into $6m waterfront paradise
A rescued Remuera villa is now a $6m-plus Mahurangi Harbour retreat with rich history and waterfront living.
.jpg)
Spotlight on Canterbury, local property market insights
Trade Me data shows Canterbury defying the property cooldown, with high demand for big homes and great townhouse deals.
Search
Other articles you might like
