Building a new home
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If you’ve been thinking about building and getting the home you’ve always wanted, arranging the finance could be easier than you realise, with less deposit needed than buying property. Our lending criteria and fees apply.
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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.
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.
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.
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).
What you need to provide in addition to your loan application:
Contact us to discuss all requirements and details.
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.
Download our Disclosure Statement or pickup a copy at your nearest branch. TSB Bank Ltd’s current assessment lending criteria, lending terms and conditions, interest rates and fees apply. Use of accounts and services are subject to TSB's General Banking Information, which includes how to resolve issues.
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