Construction home loans
Building your dream home means that you get exactly what you want down to the very last door handle
That also means there are a lot of decisions to be made, and many boxes to tick. Whether you’re planning a new build or a major renovation, a construction loan can provide the funding you need to bring your vision to life. Mortgage Sure specialises in construction loans in Hawke’s Bay and Gisborne, helping clients in Napier, Hastings, and surrounding areas access the right finance to complete their projects smoothly.
How a construction loan works
Similar to a home loan, a construction loan is designed to fund the building or renovation of a property in stages. Instead of receiving a lump sum upfront, funds are drawn down as construction milestones are met, ensuring you only pay interest on the money you actually use. Our team acts as your trusted construction home loan advisers, guiding you through the process and helping you understand repayments, loan structure, and how to manage costs throughout the build.
Who can benefit from a construction loan?
Construction loans are ideal for homeowners building a new property or investors upgrading or redeveloping existing land. If you’re starting a new build in Hawke’s Bay or Gisborne, a construction loan can make it easier to manage cash flow, pay contractors, and cover materials as your project progresses. Mortgage Sure works with you to plan your finances, helping ensure your project stays on track and within budget.
Why choose Mortgage Sure?
With over 15 years’ experience helping clients across Hawke’s Bay and Gisborne, our advisers know the local property market inside out. We work with multiple lenders nationwide to secure competitive rates and flexible loan structures for your construction project. Our team will help you navigate the complexities of building finance, answer all your questions, and ensure your loan supports your goals from start to finish.
Start building your dream home with confidence
Whether you’re planning your first home, a new family home, or an investment property, a construction loan in Gisborne or Hawke’s Bay can give you the financial flexibility to turn your plans into reality. Contact Mortgage Sure today to discuss your project and explore tailored construction finance solutions that suit your needs.
FAQs
Of course, this is known as labour only or an owner build style of construction. Your bank or lender will require a larger deposit than if it was a fixed price contract, and will require robust quotes and plans to support your build. A larger contingency fund will also need to be built into your budget to cover cost overruns as these are more common with owner builds.
When buying land, banks and lenders want to understand why you are purchasing the land and how it is zoned. If you intend to build on the land within 12 months you can borrow up to 80% of the land’s value. However, if you have no intention of building on the land, banks and lenders may consider this land banking and a deposit of 50% may be required. Furthermore, the amount a bank or lender will lend on land also depends on whether the land is zoned for apartments, residential property or lifestyle and grazing.
A house and land package is where a building company sells you a section with a spec or ‘off-the-plan’ style new build included in the price. An application for this type of loan is similar to any other application in that the bank or lender will want to understand your financial position. Where it differs slightly is that the bank or lender also requires supporting documents to understand the house and land package you are buying. These documents include a sale & purchase agreement for the land, a fixed price building contract, plans and consents for the build and builders liability or risk insurance.
There is no difference.
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