Lending for a new build residential home

Written By Kim Manunui

Building a new home from the ground up can be exciting and scary all in one, however partnering with an experienced builder and Infinance we’ll walk you through the process.

Creating new homes is favoured by the Govt so incentives are in place through banks to facilitate their production with lower deposits from 10%, favourable interest rates and cash back offers.

New builds come in many forms and packages with the main ones being –

Construction loans – where you select your builder and design on your own land or house and land package with progress payments aligned with stages signed off by a building inspector such as floor down, frame up, roof on, lock up, interior fit out and final completion with a Code Compliance Certificate ( CCC ) issued. Lenders will want to see the likes of council consents, building plans, fixed price contracts, builders credentials and builders insurance in place. Typically interest only until CCC is issued with interest applied only from each incremental drawdown, most banks have a new build package with discounted interest rates usually around 1.25% off floating rates. Allowing for typically 5% cost over-runs, some ancillary works may be completed by yourself saving you money. This way you get a custom home built to your spec with the latest in clean home and environmental standards.

Turnkey – usually the domain of developers where you lay a deposit down, chose a spec from their plans, they complete the construction and you take the keys at settlement with one drawdown at the end.

Off The Plan – where you select a spec as part of a multi-dwelling development under the one consent

Cash back offers – most banks offer a cash back offer up to 1% of the value of the loan usually with a cap ranging from $5k to $20k mind you would need a mortgage of over $2m to qualify for $20k. This is paid to your account to be used as you see fit, is handy to cover the likes of lawyers fees or even furniture.

For more on the above, click the contact button below

Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

The digital world is never static and neither are we.

And I say ‘we’ because I work with an awesome group of talented people who I gather together as required to complete a project.  Whatever your business, not-for-profit or individual needs are we gather the best team to get the job done.

Collaboratively we are creative, share sustainable values and work hard for great outcomes because that’s the buzz of satisfaction that drives us.

If you have an audience and market to reach, we can make that happen. Creative design, words that work and smart behind the scenes stuff that cuts through the online noise. We’ll design your website and then build it. We’ll manage the content as well as all your hosting needs. We can handle your online advertising so you get noticed,
and we’ll manage your social media presence so you get the clicks, likes and engagement to grow your business. All within the budget you set, because none of this needs to cost the earth.  And the job doesn’t stop when your website goes live. We are your virtual business partner.

https://www.korio.co.nz
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Unlocking equity in your home to buy an investment property