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Making building payment simple
Your own cash contribution will be used first, then as major phases of the build are completed, payments will be drawn down from your loan and paid directly to the builder. Simply provide the builder’s invoices along with signed copies of the Building Inspection Checklists for work completed, then the next stage can begin.


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Save on interest
You only pay interest on the amount you have drawn down. Principal payments are introduced once the loan has been drawn in full, which will free up cashflow while you complete the build.


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Flexible loan and payment options
With the help of our Loan Consultants, we’ll help set up your loan to suit how and when you want to repay your mortgage. Fixed and variable interest rate options are available and these are tailored to your project. Capitalisation of interest while you are renting can be a consideration, dependent upon the end loan to value ratio. Speak to our consultants about this.


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You can build with less than 20% deposit with a turn key build
Building a new home isn’t subject to the loan to value restrictions (if we approve your loan before you start building), so if you don’t have 20% deposit, you could build the home you really want instead of buying an existing property. ‘Turn Key’ builds need as little as 10% deposit - these are land and build packages which have a fixed price contract covering everything to be included, so when the construction is finished, you can "turn the key" and move in, and no more money will need to be spent. For loan values in excess of 90%, the principal excess is set over a 5 year term (income protection insurance is required to be in place prior to drawdown for this option).


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What you need to provide in addition to your loan application:

  • Confirmation that your builder is a Licensed Building Practitioner.
  • House plans and specifications.
  • A copy of the signed building contract, including builders risk insurance policy details.
  • A copy of the building consent.
  • A registered valuation providing a completed valuation which is no older than 3 months.

Contact us to discuss all requirements and details.


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Once build is complete
Provide us with a copy of the Code Compliance Certificate and/or final Building Inspection Checklist, and final payment will then be made. You’ll also need house insurance that covers the full reinstatement cost of all buildings and other improvements, including full earthquake cover and disaster cover once the builder risk insurance has expired.



Current Home Loan Rates

Special rate available for loans relating to residential properties only. Additional interest rate margins may apply for bridging loans and buyers with less than 20% deposit (including Welcome Home loans). All interest rates are subject to change without notification. TSB’s current account opening criteria, current lending criteria, terms and conditions, fees and interest rates apply. 
Term Rate Effective Date
6 Months Fixed Special from 4.85 % p.a. 13/05/2019
1 Year Fixed Special from 4.05 % p.a. 13/05/2019
18 Months Fixed Special from 4.19 % p.a. 13/05/2019
2 Years Fixed Special from 3.99 % p.a. 13/05/2019
3 Years Fixed Special from 4.15 % p.a. 13/05/2019
Housing Variable from 5.69 % p.a. 13/05/2019
6 Months Fixed from 5.35 % p.a. 13/05/2019
1 Year Fixed from 4.55 % p.a. 13/05/2019
18 Months Fixed from 4.69 % p.a. 13/05/2019
2 Years Fixed from 4.49 % p.a. 13/05/2019
3 Years Fixed from 4.99 % p.a. 13/05/2019
5 Years Fixed Special from 4.55 % p.a. 13/05/2019