Join the KiwiSaver scheme others look up to
Planning your project
Once you’ve got your deposit and conditional pre-approval sorted, you can start thinking about putting together your support team, what kind of home you want and how to build it.
Having the right people around you is crucial. Your ANZ Construction Coach can play a key role in helping you through the building process – other key people may include:
- A builder You should approach a number of builders so you can compare their credentials and costs (check out our list of key questions to ask your potential builders in our Building and Renovating Handbook (PDF 5.45MB)). Make sure they’re either a Registered Master Builder, certified builder or licensed building practitioner – for more information visit masterbuilder.org.nz and nzcb.nz
- A project manager You’ll need to establish whether your builder will also act as project manager for your build. If not, you could hire a separate project manager. If you have built previously or have experience in the industry you may save some money if you wanted by project managing yourself. You’ll also need to consider whether you need to engage an architect, draftsman, valuer and quantity surveyor (QS). For building contracts over $1million a QS will need to validate your quotes.
- A solicitor There are a number of legal matters associated with purchasing land and building a home, so it’s important to involve your solicitor before you make an offer or bid at an auction. If you need to find a solicitor check out propertylawyers.org.nz. Legal fees vary, so ask around and get an estimate.
- Family and friends They can help you throughout your journey, whether sharing their own experiences, providing recommendations on good trades people, supporting you through the process or celebrating with you once it’s finished.
Building contracts
To get construction lending, you must have a written contract for residential building work costing $30,000 or more, including GST. If your project is less, it’s still a good idea to get everything in writing so everyone understands the requirements and expectations. Before signing a contract you need to review the clauses carefully and ensure everything you’ve agreed is covered. You should seek professional advice and have your lawyer review the contract.
Here are some of the key things that may be in your building contract (This is not an exhaustive list):
- A detailed outline of what work is being carried out and by whom
- All associated costs (including labour, materials, and insurances). There may be a number of Provisional Costs (PC sums) where the exact cost is not certain yet. Common PC sums include excavation, plumbing, wiring, kitchens, bathrooms and plans and specifications
- Payment terms or schedule
- Your name and physical address along with all other parties involved
- The address of where the work is being carried out
- The date the contract is signed by both parties
- Expected start and completion date and how potential delays will be dealt with.
Types of Building Contracts
This will confirm the amount we agree to lend you. Depending on which type of contract and build you’ve selected, you may need to meet additional conditions to get full loan approval.
If there are still conditions that need to be met before we can fully approve your loan, your ANZ Construction Coach will advise you what conditions need to be met for your build.
These may include providing copies of any required consents, insurances, valuations and contracts. These conditions will be outlined in your loan approval letter, and once they’ve been met, we can release the funds for the first loan drawdown.
Eligibility, lending criteria, terms, conditions and fees apply. Interest rates and fees are subject to change.
A copy of the Reserve Bank's General Disclosure Statement and General Terms and Conditions is available on this website or on request from any ANZ branch, free of charge.
This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. An ANZ Authorised Financial Adviser will, on request and free of charge, provide you with his or her disclosure statement prepared under the Financial Advisers Act 2008. If you wish to consult one of ANZ's financial advisers, please contact us on 0800 269 296.