Budget & Finance Options
How to finance the building of a new home
As soon as you are thinking about building a home, it is a good time to speak to your finance provider as they will be able to tell you about the criteria they need to approve a loan.
Payments are made throughout the building progress and you will draw down these as required. You will need to demonstrate a schedule to the bank prior to the loan being approved and they will normally want to see a completion certificate from their valuer and final sign off from the council before they agree to provide the balance of funds.
When budgeting for a new home you need to consider:
- Land costs – including subdivision and surveying costs if applicable
- Legal and bank fees and interest associated with the build and the loan
- The construction costs of your home and some allowance for changes to specifications above standard
- Where you are prepared to compromise and where you aren’t – designer vanities and granite benchtops can add $$
- Valuation costs
- Costs for driveways, landscaping and fencing not included in the build
- Cost of interior dressings and furnishings
How much could it cost to build my Ashcroft Family Home?
We can tell you this right away! Since we have a concise range of house plans, as soon as we know the section we are building on we can give you an estimate of building straight away. Ask us now or see our plans here for pricing details.
Once you have decided upon your budget, you can get an idea here on how much mortgage repayments could be for your build.
Can you apply for a mortgage to build a new home?
Some banks offer a specifically designed ‘construction loan’ to meet the needs of the demand in newly constructed homes in Auckland.
Some features can include:
- Pre-approval of a loan to give you time to find land and finalise your plans
- Interest-only period during the construction phase of your home
- 12mths repayment holiday to manage cash flow during the build
- Reduced annual account fees during the build and for some time after the home is completed
- Smaller deposit for turn-key builds or Home & Land Packages.