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 HomeStart grant

    If you’ve contributed for three years to your KiwiSaver you may qualify for a KiwiSaver HomeStart grant. The KiwiSaver HomeStart 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 HomeStart grant criteria
    • You must be 18 years or over

    • Have not received the HomeStart 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 $85,000 or less (before tax) in the last 12 months as a sole buyer, or if two or more buyers – a combined income of $130,000 or less (before tax) in the last 12 months.

    • Have a deposit that is 10% or more of the purchase price. This can include the KiwiSaver first home withdrawal, HomeStart grant and any other funds such as savings, or a deposit gifted by a relative.

     

    LEARN MORE

  • KiwiSaver HomeStart Grant


    KiwiSaver HomeStart grant

    If you’ve contributed for three years to your KiwiSaver you may qualify for a KiwiSaver HomeStart grant. The KiwiSaver HomeStart 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 HomeStart grant criteria
    • You must be 18 years or over

    • Have not received the HomeStart 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 $85,000 or less (before tax) in the last 12 months as a sole buyer, or if two or more buyers – a combined income of $130,000 or less (before tax) in the last 12 months.

    • Have a deposit that is 10% or more of the purchase price. This can include the KiwiSaver first home withdrawal, HomeStart grant and any other funds such as savings, or a deposit gifted by a relative.

     

    LEARN MORE


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

 


 

Things to think about

Landscaping

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.

Insurance

If your home is damaged by an unforeseen accidental event such as a natural disaster, fire, accident or storm, House cover arranged by TSB in conjunction with TOWER can help protect you when the unexpected happens. Make sure you’re covered.

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

 

Home Loan Special Rates

YOUR 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.

HOME LOAN RATES

tsb home loan house

YOUR HOME LOAN OPTIONS

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.

LOAN & REPAYMENT OPTIONS

tsb home loan calculator

YOUR REPAYMENTS

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.

HOME LOAN CALCULATOR

 


 

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.

 

 

StepUp
Automatically increase your repayments by a small amount each year.

 

 


 

Chat to us today

 


 

Save time - start your application

Download the application form below, fill out what you can and email it to emailsupport@tsb.co.nz. 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 or let our Mobile Mortgage Managers come to you – whenever and wherever suits.

When you’re ready to talk with one of our team, you’ll need to provide us with the following to assess your loan application:

  • Evidence of your income if your wages aren't deposited directly into a TSB account (three months’ bank statements and your two most recent pay slips).
  • Or, updated financial statements for the last two years if you're self-employed.
  • Three months of statements for any credit cards, hire purchases or personal loan facilities.
  • Photo Identification (Driver’s License or Passport - these may need to be certified).

If we need more information or additional documentation, we’ll let you know what else you need to bring along.

 

  • Don’t forget to read this bit

    Terms and Conditions – refer to the terms and conditions of your loan. Take a look at our Disclosure Statement or grab a copy from your local branch. TSB’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.

    1. Offer available from 20 August – 13 October 2018 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). Loan must be contracted during the campaign period and drawn down within 60 days of contracting. Offer can be withdrawn or amended at any time. 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. 

    2. Use of ATMs not owned by any bank in New Zealand may incur a service fee (in addition to standard account transaction fees) for which TSB receives a commission.