Build Your Vision
From the Ground Up.
Construction finance requires careful timing and cash flow management. We specialize in turnkey builds, progress payments, and multi-unit development funding.
What we do for
construction projects.
Turnkey Builds
Lending solutions for off-the-plan or house & land packages purchased from a builder.
Progress Payments
We manage the complicated drawdown schedule as each stage of your build completes.
Minimal Deposits
New builds are exempt from normal LVR rules, meaning lower deposits are possible.
Cost Overrun Buffers
We build in contingencies to protect you against unexpected material or labor costs.
Land Bank Loans
Finance to purchase a section now and keep your options open for building later.
Development Finance
Solutions for multi-unit dwellings, subdivisions, and larger developer projects.
How it works
step by step.
Free Discovery Call
We discuss your income, KiwiSaver balance, deposit savings, and home goals. Completely free, no obligation.
Lender Assessment
We run full eligibility checks across 20+ lenders and present you with the top 3 options including rates and structure.
Pre-Approval
We submit your application and coordinate with the lender. Most first home buyers receive pre-approval within 24 hours.
Find Your Home
Shop with confidence knowing exactly how much you can spend. We remain on call for questions throughout your property search.
Settlement & Keys
We coordinate with your solicitor to ensure settlement happens smoothly. Then you pick up the keys to your first home!
A Complete Guide to Construction Finance in New Zealand
Building a custom home or undertaking a major residential development in New Zealand is a complex endeavor that requires specialized financial architecture. Unlike purchasing an existing property where the funds are transferred in a single transaction upon settlement, construction finance involves releasing funds in sequential stages as the build progresses. This methodology mitigates risk for the lender but requires the borrower to navigate a labyrinth of fixed-price contracts, council consents, and progress valuations. Securing a construction loan demands a broker with deep expertise in development finance.
Turnkey vs. Build-Only and Progress Payments
It is essential to distinguish between a 'Turnkey' contract and a standard 'Build-Only' or progress payment contract. A turnkey property involves paying a small deposit upfront, with the remaining balance due only upon the home's completion and the issuance of a Code Compliance Certificate (CCC). This is relatively straightforward to finance. However, custom builds usually rely on progress payments. The lender will establish a drawdown schedule—typically comprising 5 to 6 stages (e.g., slab down, framing, roof on, lock-up, and practical completion). At each stage, the builder issues an invoice, and the lender may require a valuer's report before releasing funds. We manage this intricate drawdown process on your behalf, ensuring your builders are paid promptly and construction momentum is maintained.
Managing Cost Overruns and Contingency Funds
One of the most significant risks in construction lending is the potential for cost overruns due to material price escalations, variations in scope, or unforeseen site issues. Banks are acutely aware of this risk and will rigidly scrutinize your Registered Master Builder or Certified Builder contract. They typically require a fixed-price contract and will often mandate a 10% to 15% contingency fund to be held in reserve. We help you structure your application to account for these stringent requirements, ensuring you have sufficient capital buffers approved upfront so that unexpected expenses do not halt your project mid-build.
Common Questions
Ready to start
your build?
Book a free consultation with a Finch mortgage adviser today. No obligation, no cost, just honest advice.