How it works
The amount you can borrow depends on:
- how much you earn
- your deposit
- the value of the land
- the cost to build the house
- the estimated value of the finished property.
When you apply, you’ll need to show us:
- the Sale and Purchase Agreement for the land, if you don’t already own it
- a Registered Valuer’s report of the estimated value of the finished home, based on the plans
- the building contract and builder’s details, including their risk insurance (this is a special sort of policy, not just home insurance)
- the building consent and any resource consents.
While you’re building, you’ll draw down money to pay for stuff at certain stages. At each drawdown, we’ll need to see the invoices that need to be paid, and independent certification that the work’s been completed (so you may need to get interim valuations).
Once your home is finished, we'll need some extra documentation for the final drawdown, including:
- the Registered Valuer’s completion certificate
- a code compliance certificate
- the invoices to be paid
- full replacement house insurance with our interest as mortgagee noted.
If you’re using an architect or design-and-build company, they’ll usually take care of all this for you.