There is so much to consider when looking at building your house such as deciding on the site to build, consents, designs/plans, builders, councils, contractors, and more. Let Mortgage Field take care of your financing needs.
You will be busy enough with the above!
A Mortgage Field Home Loan application needs to be completed with supporting documents. We will help guide you with what we need no matter what stage you are at with your plans.
Once we have a fair idea of what you and we need to progress, Mortgage Field will take it from here and will try and make this process as easy as possible.
Mortgage Field will be handling your financing needs from application to the final draw-down of your construction loan.
How a Construction Loan Works
A construction loan can be quite different from a standard home loan in New Zealand. Therefore, we recommend that you get in touch so that we can offer some helpful advice on what it entails. In many cases, you can end up with one rate for your land loan, and a different rate for your construction loan. Both sometimes even settle separately.
Your initial construction loan may be completed as two separate applications - one for the land purchase, and one for the house and land. After you complete the second application, your first loan application is eliminated.
Most banks and non-bank lenders require you to build on your land within two years of settling. Your home doesn't need to be finished in that timeframe, but it needs to be started.
Your home's construction is then completed in stages, with payment due after each stage. Fortunately, all of this information is outlined in your construction contract, including payments that are due and when. The bank or non-bank lender in NZ will charge you on the money you have drawn down, which means your minimum repayments are based on the construction phase of your home.
If you have any further questions about construction loans in New Zealand, don't hesitate to get in touch.