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Construction Loan

Turning your dream home into reality starts with the right financial foundation. At Fundmaster, we specialise in Construction Loans tailored to support your project from groundwork to move-in day. Our expert advisers in New Zealand are here to guide you through every stage of your building journey.

Our services

Turn Plans into Reality

At Fundmaster, we help you secure the funding needed to break ground confidently. Our construction loans cater to a variety of building projects, from residential homes to larger commercial developments. We understand that each construction project has unique financial needs, which is why we offer flexible solutions to support your build from start to finish.

Our construction loans feature flexible drawdowns, allowing you to access funds as needed throughout the construction phase. This helps you manage cash flow effectively, drawing money only when required to pay for each stage of your build. We also offer interest-only options, minimising your payments during construction. You’ll only pay interest on the amount drawn down, easing financial pressure while your project is underway.

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Your Construction Loan Journey with Fundmaster

At Fundmaster, we understand that every homeowner’s situation is unique. Our experienced advisors provide personalized guidance to ensure you make the best decision for your financial future.

01

Pre-Construction Planning

We start by understanding your project and financial situation. Our team assesses your budget, helps you understand loan options, and secures pre-approval. This early preparation gives you confidence when dealing with builders and contractors. We’ll also explain how construction loans work, including progress payments and interest calculations, ensuring you’re fully informed from the start.

02

During Construction

As your build progresses, we ensure your financing keeps pace. We manage regular progress payments, aligning fund releases with construction milestones. Our advisers are always available to address financial queries, helping you navigate any unexpected costs or changes. We also keep you informed about your loan balance and interest payments, maintaining transparency throughout the construction phase.

03

Completion and Beyond

Once construction is complete, we help transition your construction loan to a standard mortgage. We’ll review your financial position and discuss options like fixing interest rates or setting up revolving credit facilities. Our support doesn’t end at completion – we’re here for ongoing advice, whether you’re considering refinancing or planning your next project. Your long-term financial success remains our priority.

Why Choose Fundmaster for Your Construction Loan?

  • Industry Expertise: Our deep understanding of both construction and finance ensures smooth project funding.
  • Relationship-Focused: We build lasting relationships, supporting you from first home to dream home and beyond.
  • Holistic Approach: We consider your overall financial picture, not just the immediate construction needs.

Ready to Start Building Your Dream?

Don’t let financing complexities delay your construction project. Let Fundmaster’s experts guide you through the process, ensuring you have the right financial structure to bring your vision to life.

Start Your Journey to Financial Success

Ready to take the first step towards your financial goals? Whether you’re looking to buy your first home, refinance your mortgage, or seek expert advice on insurance and business loans, Fundmaster is here to help.

Don’t wait to secure your financial future. Reach out to us today and let’s start building your path to prosperity together.

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How does a construction loan differ from a standard home loan?

A construction loan is designed to build a new home or undertake major renovations. Unlike a standard home loan, where you receive the total amount upfront, a construction loan is drawn down in stages as the building progresses. You only pay interest on the amount drawn, which helps manage costs during construction. The loan typically converts to a standard home loan once construction is complete. This staged approach allows for better cash flow management and reduces the interest paid during the building phase. However, construction loans often have stricter approval criteria and may require more documentation, including council-approved plans and a fixed-price building contract.

Can I get a construction loan with a low deposit?

While most lenders prefer a 20% deposit for construction loans, options are available for lower deposits, particularly for first-home buyers. Some lenders offer construction loans with as little as a 10% deposit, especially when combined with government schemes like the First Home Loan. However, low-deposit construction loans often come with additional criteria, such as Lender’s Mortgage Insurance or higher interest rates. The exact deposit required can depend on factors like your credit history, income stability, and the location and nature of the construction project. At Fundmaster, we can help you explore various options and find lenders who offer construction loans that match your deposit capabilities.

How are payments structured during the construction phase?

During the construction phase, payments are typically structured as a series of draws or progress payments that align with specific stages of the build. These stages usually include foundation, frame, lock-up, fit-out, and completion. As each stage is completed and signed off by the lender’s valuer, the corresponding loan portion is released to pay the builder. During this time, you generally only pay interest on the amount drawn down, not the total loan amount. This interest-only period usually lasts for the construction, up to 12 months. Once construction is complete, the loan typically converts to a standard principal and interest loan unless other arrangements have been made.

What happens if construction takes longer than expected?

Most lenders allow for a construction period of up to 12 months. If construction extends beyond this timeframe, you may need to apply for an extension or refinance the loan. Extensions are often granted if there’s a valid reason for the delay, such as weather or supply chain problems. However, extended delays can lead to additional costs, including interest payments and possibly higher fees. In some cases, if significant delays occur, the lender may reassess the loan terms or require a property revaluation. It’s crucial to keep your lender informed of any potential delays. At Fundmaster, we can help you communicate effectively with your lender and explore options if your construction timeline extends beyond the initial agreement.

Can I change the building plans once the loan is approved?

While minor changes to building plans may be allowed after loan approval, significant alterations could require a reassessment of the loan. This is because the loan approval is based on the specific plans and costings provided in your initial application. Minor changes that don’t substantially affect the value or structure of the property are generally acceptable. However, significant changes like altering the number of bedrooms or the floor plan could affect the property’s value and require a new valuation and loan reassessment. It’s crucial to consult with your lender before making any changes to your plans. At Fundmaster, we can liaise with your lender on your behalf to determine how proposed changes might affect your loan and guide you through any necessary reapproval processes.

Frequently Asked Questions

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