Construction Loans

Building New?
Get the Finance Right from Day One.

Construction finance is different from standard home loans — and getting it wrong can stall your build. Jagdip manages the full process: lender selection, drawdown scheduling, and keeping your build financially on track from foundation to finished home.

New builds exempt from DTI caps
New builds exempt from standard LVR restrictions
5% deposit possible with Kāinga Ora First Home Loan

New build advantages 2026

DTI
New builds exempt from DTI caps
LVR
New builds exempt from LVR restrictions
5%
Minimum deposit possible with Kāinga Ora
$0
Cost to you for Jagdip's advice

Every construction scenario covered

New build — turnkey

Buying a completed new build from a developer? Finance is simpler — closer to a standard mortgage. Jagdip compares lenders and locks in your rate before settlement.

New build — progress payment

Building from scratch with a registered builder? Jagdip manages the progress payment loan — funds drawn down in stages as your build progresses.

House and land packages

Buying land then building? Jagdip structures the land purchase and construction together or separately, depending on which approach suits your builder.

Renovation finance

Major renovation needing staged funding? Jagdip structures renovation loans similarly to construction — drawdowns released as work is completed.

Owner-builder

Building yourself? Jagdip knows which lenders work with owner-builders and what the approval requirements are.

Investor new build

New build investment properties are exempt from both DTI and LVR rules — the most accessible investor lending option right now.

Why new builds have the best lending conditions in 2026

New build vs existing property lending rules 2026

Lending rule
Existing property
New build advantage
DTI cap
Owner-occ 6×, Investor 7×
✓ Exempt — no DTI limit
LVR deposit
Owner-occ 20%, Investor 35%
✓ Exempt — lower deposits possible
First Home Loan
5% deposit eligible
✓ Also eligible
Interest deductibility
N/A for owner-occ
✓ 100% for investor new builds

🏗 New builds are the #1 lending opportunity in NZ right now

Because new builds are exempt from both DTI caps and LVR restrictions, they allow buyers to purchase with lower deposits and higher leverage than existing properties. Jagdip specialises in matching first home buyers and investors with new build lending.

Construction loan FAQs

What is a construction loan and how does it work?

A construction loan releases funds in stages — called drawdowns — as your build progresses. You typically only pay interest on the amount drawn, not the full loan. Jagdip manages the drawdown schedule and lender communication throughout.

What deposit do I need for a construction loan in NZ?

Because new builds are exempt from LVR rules, the deposit required varies by lender — often as low as 10% for first home buyers with Kāinga Ora support. Standard construction loans typically require 20%. Jagdip finds the best option for your specific build.

How long does construction loan approval take?

Construction loan approval typically takes 5–10 working days for pre-approval once a complete application is submitted. Jagdip prepares a comprehensive application upfront to minimise delays.

Can I fix my interest rate during construction?

Some lenders allow you to lock in a fixed rate during the construction period, others keep it floating. Jagdip advises on the rate strategy that makes most sense for your build timeline.

Is Jagdip's construction loan advice free?

Yes — completely free. Jagdip is paid by the lender on settlement. See her Disclosure Statement.

Related services

Ready to start building?

Book a free chat with Jagdip before you sign any builder contracts — getting the finance structure right from day one saves time, money and stress.

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