The mortgage process for building a new house

Building your home can be an exciting project and can be a great way to stamp your personality on to your home. Below is a step-by-step guide on how the home loan process works when building your own home.


1. Understand your financial position and borrowing capacity

Home loan deposit options

The amount you are able to borrow may depend on the amount of your deposit. Find out more about home loan deposit options and security.

Start your application online

You can start the application process online by completing a short form. Once this is submitted, one of our home loan experts will be in touch to take you through the next steps.

Get a conditional pre-approval

Confirmation that the bank will lend you the amount you need, subject to satisfying certain terms and conditions.

Borrowing calculator

Calculate how much you could borrow based on basic information such as salary and financial commitments.


2. Getting a lawyer

We strongly recommend that you get your lawyer (or solicitor) involved as early as possible.


3. Planning the build

Once you have the section where you would like to build, you are ready to start planning.

Finding the right architect, designer or company

Before you start the build process you will want to ensure you find the right architect or group housing company.

Consider how you will manage the project?

There's a lot to consider in managing a building project, whether this is something you will manage yourself or engage a professional project manager, builder or group housing company to complete this on your behalf.


4. The building contract

Written contracts for residential building work costing $30,000 or more (including GST) are compulsory before work starts, this is a good way to protect yourself and ensures everyone is clear about what has been agreed upon – and what happens if things don't go to plan. It’s also a good idea to get your lawyer to review the contract beforehand.


5. Working out your finance options

When you're building, your home loan is approved for the full amount, but you draw it down in instalments as the building work progresses (your building contract will set out a payment schedule).

To find out more about how this process works, contact us.


6. Obtaining building and resource consent

You'll need to obtain a building consent from your local council before building commences. Depending on your particular home and what you're proposing to build, you may also need to obtain resource consent.

In most cases your architect, designer, builder or building company will assist with these applications. If you're going to submit the applications yourself contact your local council for information on how to apply.


7. Managing the building phase

Whether you're managing the building yourself or not, you should keep a close eye on the building as it progresses. Ensure you keep a record of all invoices, variation, payments and correspondence.


8. Managing the completion phase

When the work is finished, make sure that:

  • The builder leaves the site clean and tidy and that you have all product manuals and guarantees you need.
  • A final building inspection is completed.
  • The Code of Compliance Certificate is applied for – this certifies that the building complies with the building code. It's important this is signed off as it could cause problems with your insurance or with resale if you don't have it.
  • Contact your local council for more information on inspection and consent requirements for your area.
  • Now’s a good time to review or organise your house, contents and life insurance.

9. You are ready to move in!

Now that building is complete this is an ideal time to review your home loan and ensure it is set up in a way that suits you. Find out about how your can manage your home loan and see tips on how you could pay it off faster.

ANZ lending criteria, terms and conditions and fees apply.