Getting a building loan

Where do I start ?

From as little as a 10% deposit, you could build instead of buying an existing property. Building a new home isn’t subject to the RBNZ loan to value restrictions.

There are a few things to consider when thinking about building your own home. If you’re ready to undertake a building project, the first step is to get your finance in order. This ensures you can be confident in searching for that perfect section, or talking with local build companies with a clear budget in mind.

Contact us to talk through the steps involved to bring your building project to life – we’re here to help.


What kind of build project suits you?

See what loan option suits you so you can get your build project underway.

Applying for a building loan

From as little as a 10% deposit, you could build instead of buying an existing property. Building a new home isn’t subject to the loan to value restrictions (if your loan is approved before you start building). Talk with one of the team to see if you’re eligible.

Buying a house and land package

‘Turn Key’ builds need as little as 10% deposit - these are house and land packages which have a fixed price contract covering everything in the build.

You’ll pay a deposit up front, and then when construction is finished you’ll pay the balance, so you don’t need to worry about making progress payments throughout the build. When construction is finished, you can move straight in.



Building your first home

If you’re a first home buyer and looking to build, you might need a helping hand to get started. There are a few options you can explore to help fund your build project. 

  • KiwiSaver Withdrawal

    KiwiSaver first home withdrawal

    If you’ve been a member of KiwiSaver for at least three years, you may be able to withdraw your KiwiSaver funds to put towards your first home. There’s a few criteria that need to be met – see if you might be eligible:


    KiwiSaver withdrawal criteria
    • You've been saving with KiwiSaver for at least three years

    • You're intending to live in the property (KiwiSaver cannot be used to buy an investment)

    • You leave a minimum balance of $1,000 in your KiwiSaver account

    • If you currently own land, a home, or have a share in a property, you won’t be eligible

    • The property is located in New Zealand



  • KiwiSaver First Home Grant

    KiwiSaver First Home Grant

    If you’ve contributed for three years to your KiwiSaver you may qualify for a KiwiSaver First Home Grant. The KiwiSaver First Home Grant provides eligible first-home buyers with a grant to put towards the purchase of an existing/older home. The grant can be up to $5,000 for individuals and up to $10,000 where there are two or more eligible buyers.


    KiwiSaver First Home Grant criteria
    • You must be 18 years or over

    • Have not received the First Home Grant or KiwiSaver deposit subsidy before

    • You must have contributed regularly to KiwiSaver for a minimum of three years, at least the minimal allowable percentage of your total income.

    • Earned $95,000 or less (before tax) in the last 12 months as a sole buyer, or if two or more buyers – a combined income of $150,000 or less (before tax) in the last 12 months.

    • Have a deposit that is 5% or more of the purchase price. This can include the KiwiSaver first home withdrawal, First Home Grant and any other funds such as savings, or a deposit gifted by a relative.



Find a section

The next step is to find the perfect spot to put your new home. You may choose to find an empty section that fits your criteria before deciding on the house plan to build on it.

Alternatively, a house and land package might be the easiest option where you can have input on the house design but don’t have to worry about managing everything yourself.

If you’re lucky enough to find that your perfect home is already built, the purchase of the property would be considered under the ‘new build’ loan to value restrictions. Meaning you may only need a 10% deposit to purchase it. The property needs to be under six months old and hasn't been previously occupied to qualify.

Find a design

Your choice of house design will depend on the type of home you want to build.

Building companies will have pre-drawn plans you can use and adapt to suit your needs. Just remember that making changes to those plans will likely increase the cost so it’s good to factor in a buffer to allow for these changes.

If you know exactly what you’re after, you can create a custom house design through an Architect and then have that plan priced up through a builder.

There are many options to finding your perfect home. Your choice will depend on the type of home you want, your budget and how much input you want into the house design.

Once you’ve made the decision, your plans will then need to be submitted to your local council to obtain a building consent.

The build begins

If you’ve got your building consent sorted, now comes the exciting part - the build!

Most builds require the site to be cleared and for more difficult sites, retaining walls and posts may need to be put in place before work can begin on setting the foundations. Depending on what decisions you’ve made for your house build it can take anywhere from 8 weeks to 12 months to complete.


Understanding progress payments

When you’re building, progress payments are made to your builder in stages. This ensures you’re only paying for the work that has been done during the build.

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 for work completed, then the next stage can begin.


Nearing completion of your new home

You’ll be advised of a date that the builder will hand the property over - this is when you’ll get the keys to your new home!

For us to release the final payment you’ll need to let us know when that handover date is, and provide us with the following documentation:

  • A copy of your house insurance policy

  • A completion certificate from your valuer




To think about


Remember to factor in the cost of landscaping into your budget. If purchasing a turn key property, check whether any landscaping is included in the set price.


House cover arranged by TSB in conjunction with TOWER provide insurance cover for a home if it is damaged by an unforeseen accidental event such as a natural disaster, fire, accident or storm.

Council Rates

Remember to check what your local Council rates will be per year so you can factor this cost into your budget.




Your home
loan options


TSB rate


Whether you’re after the certainty of a fixed term, the flexibility of floating, or a combination of both, we have a range of competitive rates to offer.


tsb home loan house



When it comes to loan type and repayment plans, one size doesn’t fit all. Enjoy the freedom of a revolving credit, or make budgeting easier with a fixed home loan - whatever works best for you.


tsb home loan calculator



Align your repayments to suit your lifestyle, whether it's weekly, fortnightly, monthly or quarterly. Use our home loan calculator to see what your repayments could be.





Manage your home loan

With a little planning and some helpful home loan tools, you can shorten the length of your loan term, reduce the amount of interest you pay, and save money in the long run.

See how our home loan features can help you pay off your loan sooner.

We’re here to help

If you’re unable to make your regular payments and are facing unforeseen hardship, there are options available to assist you through difficult times.





TSB Home Loan

Start your application by providing us with your key details. We'll then contact you for any further information we might need and to discuss the next steps. You can also make an appointment with your local branch, give us a call on 0800 872 226, let our Mobile Mortgage Managers come to you – whenever and wherever suits or set up a video call via Virtual Bank and chat to us from anywhere.