Building and Renovating Dreams with New Zealand’s Top Brokers
Your Partner in Turning Plans into Reality
With New Zealand’s top mortgage brokers by your side, you gain access to unparalleled expertise, competitive rates, and a seamless process tailored to your needs. Whether you’re building a new home or embarking on a renovation project, here’s why we’re the right choice for you.
Access to New Zealand’s Widest Panel of Lenders
With connections to the most trusted lenders, we secure the best loan options and competitive interest rates to suit your project.
Expert Guidance from Start to Finish
From financial planning to project completion, our advisers simplify every step and handle the complexities so you don’t have to.
Tailored Loan Solutions
Whether it’s a turnkey contract, progressive payments, or accessing KiwiSaver, we customize loan options to match your goals and circumstances.
Stress-Free Loan Management
Our team coordinates with lenders, builders, and other professionals, ensuring a smooth drawdown process and on-time payments.
Step-by-Step Guidance for a Seamless Project
Embarking on a construction or renovation project can be overwhelming, but with the right guidance, it becomes an exciting journey. Here’s a detailed breakdown of the key steps, so you know what to expect at every stage.
1. Understand Your Options
What are your choices? Before you start building or renovating, it’s essential to understand the type of contract you’ll enter into with your builder or tradespeople. This impacts costs, payments, and how hands-on you need to be.
Contract types explained:
Turnkey Contract: A fixed-price agreement where the builder manages everything. Pay a deposit at the start and the balance upon completion.
Build-Only Contract: Payments are made in stages as work progresses, giving you more control but requiring close oversight.
Partial-Build or Labour-Only Contract: Suitable for experienced project managers. You pay contractors individually, which increases the risk of cost overruns but offers flexibility.
2. Plan Your Finances
Determine your budget: Work out how much you can borrow and what deposit is required. This varies based on the type of project and contract.
Deposit requirements:
*Typically 20% for most projects, but as low as 10% for turnkey contracts or higher for labour-only projects.
*Renovation loans often allow borrowing up to 80% of your home’s post-renovation value.
Progressive drawdowns: For construction loans, payments are made in stages, reducing interest costs in the early phases. Interest-only payment options are also available during construction.
3. Secure Loan Pre-Approval
Why it’s important: Pre-approval gives you clarity on your borrowing capacity and strengthens your position when working with builders or contractors.
What’s needed:
*Proof of income, detailed project plans, and an estimated valuation of your property post-completion.
*Your adviser helps ensure all required documents are in place.
4. Plan the Project
Build your support team: Assemble professionals like architects, quantity surveyors, project managers, and builders. Choose experts with a track record of success and reliability.
Obtain approvals:
Council building consent and resource consent if required.
Registered valuations to support loan finalization.
Insurance matters: Ensure you have contract works insurance to protect against unexpected issues during the build.
5. Begin Construction
Start the work: Builders commence based on the agreed construction contract, with oversight from your project manager or lender.
Progressive payments: Submit invoices and approvals for each stage to your lender for payment. Valuations may be conducted to confirm progress aligns with the loan-to-value ratio.
Monitor costs: Keep an eye on cost overruns and adjust plans if needed, focusing on essentials first.
6. Complete and Move In
Final inspections: Ensure the project is completed to specification and council Code of Compliance is issued.
Final drawdown: The last loan payment is made, transitioning your loan to standard terms with fixed or variable rates.
Enjoy your space: Step into your newly built or renovated home and enjoy the results of your journey!
Useful Resources
Embarking on the journey to homeownership is a significant milestone, and having the right tools can make all the difference. Our suite of calculators is designed to provide clarity and confidence as you navigate the financial aspects of buying your first home.
Here are some calculators that can assist you:
How Much Can I Borrow?
Get a quick estimate of your borrowing capacity based on your income, expenses, and financial situation.
What Are My Repayments?
Calculate your loan repayments to better understand your monthly budget and financial commitments.
Simplify Your Build with a Turn-Key Solution
A Turn-Key solution offers a hassle-free approach to building or renovating, allowing you to step into a fully completed home or project without managing the complexities of construction. Here’s why this option might be the perfect choice for your next project.
Advantages of a Turn-Key Solution:
Fixed Price and Simple Contracts
With a Turn-Key contract, the total cost is determined upfront. This eliminates surprises and helps you budget with confidence.
Contracts are straightforward, combining a sale and purchase agreement with a fixed-price agreement for the build.
Smaller Deposit Requirements
Typically, only a 10% deposit is required to secure your Turn-Key project, making it more accessible than traditional construction loans.
The balance is payable upon project completion, reducing upfront financial stress.
No Payments During Construction
Unlike progressive payment loans, mortgage repayments start only after the home is completed and meets the Code of Compliance Certificate (CCC).
This allows you to manage your finances better while the build is underway.
Streamlined Finance Approval
Turn-Key projects involve fewer conditions to meet for loan approval compared to other construction contracts.
This reduces delays and simplifies the process of securing your dream home.
Move-In Ready Homes
With a Turn-Key solution, the builder handles all aspects of the project, delivering a finished property that’s ready for you to move into immediately.
Considerations for a Turn-Key Solution:
Time Limitations on Finance Offers
Most Turn-Key finance approvals are valid for up to a year. Delays in construction could require reapplying for finance, which may involve additional risks.
Potential for Higher Costs
Turn-Key solutions may have slightly higher upfront costs compared to other construction loans, but the simplicity and reduced risk often outweigh this.
Builder’s Quality Assurance
Ensure the builder’s track record is reliable. Check reviews, previous projects, and the terms of your agreement to ensure the promised quality is delivered.
With New Zealand’s top brokers by your side
Let’s Bring Your Dream Home to Life
Whether you’re considering a Turn-Key solution or planning a custom project, we’re here to provide expert advice, competitive loan options, and seamless support from start to finish. Take the first step toward creating your perfect space today!
Frequently Asked Questions
Building or renovating your dream home comes with many questions. Here are answers to some of the most common inquiries to help you feel confident and informed throughout the process.
What types of loans can I use for building or renovating?
You can choose from various loan options based on your project type and goals. Construction loans, Turn-Key solutions, and land and construction loans are popular choices. Our experts will help you select the best option for your needs.
How do construction loans work?
Construction loans typically operate on a progressive drawdown system, where funds are released in stages as work is completed. During this time, you may only pay interest on the amount drawn down, reducing costs in the early stages of your project.
Is it easier to renovate or build a new home?
This depends on your goals, budget, and property condition. Renovations are ideal for enhancing an existing space, while building new allows for complete customization. We can help you evaluate your options.
What’s the deposit requirement for a construction loan?
The deposit varies based on your contract type. Turn-Key contracts may require as little as 10%, while other construction loans often need 20% or more of the completed project’s value.
How do I prepare for cost overruns?
It’s essential to include a contingency fund in your budget, typically 10–20% of the total project cost. We’ll help you plan for unexpected expenses and ensure your loan structure accommodates them.
What’s the difference between a Turn-Key solution and a standard construction loan?
A Turn-Key solution provides a completed home with fewer upfront payments and no progress payments during construction. Standard construction loans involve staged payments and require more hands-on involvement during the project.
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Top Broker is your trusted partner for navigating the world of home loans and property financing. With access to over 20 lenders and tailored advice, we simplify your journey toward achieving your property goals.
Contact Information
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