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Back My Build variable rate

Information on this page is for existing Back My Build variable rate customers. Back My Build variable rate is closed to new applications.

Back My Build variable rate (closed to new applications)

Information on this page is for existing Back My Build variable rate customers. Back My Build variable rate is closed to new applications.

ASB Back My Build variable rate

Min 20% equity

Loan processing fee of up to $400 may apply. Only available on term loans for building a new residential home. After the Back My Build Variable Rate period our Housing Variable Rate will apply. For those with less than 20% equity see here for rates. 

Get $3,000 when you build a 6 Homestar rated home

In partnership with the New Zealand Green Building Council, to encourage green and sustainable building practices for healthier, happier Kiwis,  ASB will give Back My Build variable rate home loan customers a cash contribution of $3,000 if they are building a 6 Homestar rated home (or higher). A Homestar rating recognises design elements that enable homeowners to keep their homes warm, dry, well ventilated and resource efficient.

To be eligible for the cash contribution, the lending must be on the Back My Build variable rate home loan with minimum new lending of $250,000 and evidence must be provided that you are working through the Homestar process or that the property is Homestar certified.

Back My Build variable rate is closed to new customers.

Find out more

ASB’s lending criteria and terms apply. The applicant(s) must be able to evidence the intent to achieve a Homestar certification rating of 6 or higher on the new residential dwelling financed by a Back My Build variable rate home loan, by providing us with one or more of the following: a) Presentation of a Homestar Registration Letter issued by the NZGBC; or b) Presentation of a Homestar Design Rating Confirmation Letter issued by the NZGBC; or c) Presentation of the Homestar Built Certificate. The cash contribution is conditional on the applicant agreeing that the loan will remain with ASB for at least 3 years from drawdown and if the loan is repaid within that time a pro-rata portion of the cash contribution, based on the remaining months left, will be repaid to ASB. This offer cannot be used in conjunction with any other ASB cash contribution offer.

Frequently asked questions

Why is ASB removing the Back My Build variable rate offer?

Back My Build variable rate was part of ASB’s commitment to use the discounted funds available to ASB under the Reserve Bank of New Zealand’s Funding for Lending Programme to help build a more sustainable future for all New Zealanders, and to pass on the benefit of a low interest rate through to customers.

ASB has now reached the Funding for Lending threshold ahead of schedule due to the overwhelmingly positive response. As this funding has now been fully committed, the Back My Build variable rate will no longer be available to any applications or top-ups that are not conditionally or fully approved by 8 April 2022, and documented by 8 July 2022 or the expiry of the approval (whichever comes first).

When is the last date you will receive my application to get the Back My Build variable rate?

Your application needs to be approved and assessed by close of business 8 April 2022. To get the Back My Build variable rate your application must be of sufficient quality that it is approved by 8 April 2022.

When does my loan need to be documented to get the Back My Build variable rate?

If you are approved (have a letter of offer) for the Back My Build variable rate by 8 April 2022 you have until close of business 8 July 2022 or the expiry of your approval, whichever comes first, to have your loan documented to secure the Back My Build variable rate. The loan does not need to be drawn down by this date.

Any loans that are documented after 8 July 2022 will not be eligible for Back My Build variable rate. Where the documentation deadline of 8 July 2022 is not met then you will receive ASB’s standard housing variable rate. Existing Back My Build variable rate approvals that expire after the 8 April 2022 can be rolled over but must use ASB’s standard housing variable rate.

When does the Back My Build variable rate end for current Back My Build variable rate home loans?

The Back My Build variable rate is available for up to 3 years from the date of first drawdown. The final day of the Back My Build variable rate is either:

  • 36 months from the date of first drawdown;
  • the date that the customer switches from the Back My Build variable rate to another interest rate (e.g. to a fixed rate term);
  • or 30 November 2025, whichever comes first.

What will happen to my pre-approved loan that is still within the 90-day approval period?

If you have an existing Back My Build variable rate conditionally or fully approved application, you have until 5pm, 8 April 2022 to rollover (extend) the 90-day approvals with a Back My Build variable rate. Any rollover of approved Back My Build variable rate applications after the 8 April 2022 will be transferred onto the standard housing variable rate. If you have a Back My Build variable rate application that has been approved on or prior to 8 April 2022, you will have up until 8 July 2022 or the expiry of your approval, whichever comes first, to document your lending and secure the Back My Build variable rate.  Where the documentation deadline of 8 July 2022 is not met then you will receive ASB’s standard housing variable rate.

What if my turnkey goes over 12 months before drawing down (i.e. our build takes longer than expected)?

Unfortunately, you will need to redocument your loan and as a result the redocumented loan will no longer be eligible for the Back My Build variable rate and the standard housing variable rate will apply.

What if I am just waiting for the RV to document – that isn’t due for another two weeks’ time?

If you have an existing Back My Build variable rate conditionally or fully approved application, you have until 5pm, 8 April 2022 to rollover (extend) the 90-day approvals with a Back My Build variable rate. Any rollover of approved Back My Build variable rate applications after the 8 April 2022 will be transferred onto the standard housing variable rate. If you have a Back My Build variable rate application that has been approved on or prior to 8 April 2022, you will have up until 8 July 2022 or the expiry of your approval, whichever comes first, to document your lending and secure the Back My Build variable rate. Where the documentation deadline of 8 July 2022 is not met then you will receive ASB’s standard housing variable rate.

What happens if I have documented my loan but can't draw down until our build is finished?

Loans should be drawn down by the expiry of offer date as per the terms and conditions. If ASB chooses to extend the date that you can draw down on the existing documentation, then you will continue to receive the Back My Build variable rate. If ASB needs to redocument after 8 April 2022 then you will receive the standard variable rate.

What if I don’t have a title for the turnkey property, can the Back My Build variable rate loan be documented?

A turnkey will normally be part of a new subdivision, so it can only be documented if ASB have a head title and a pre-allocated title reference for ASB’s security. If ASB have this, documents can be sent to the solicitor to be signed and returned within 60 days. They are then valid for 12 months from the date the document was issued.

Can I combine the Back My Build variable rate loan with the loan I used to purchase my land?

Only if the new loan or construction loan top-up is documented prior to 8 July 2022. Noting that the build loan must have been received and approved by 5pm Friday 8 April 2022.

What happens if my turnkey is documented but won’t draw down for 8 months?

That is fine, provided the loan documents are signed and returned to ASB within 60 days, and the loan is advanced within 12 months from the date the documents were issued.  Please note, this only applies if 100% of the loan is on the Back My Build variable rate (not split across fixed and floating).

What will happen if I need to Top Up my Back My Build variable rate construction loan?

There are two options:

  • You can top-up or restructure the Back My Build variable rate loan if the application is assessed and approved by close of 5pm Friday 8 April 2022 and documented by 8 July 2022 (or earlier if the expiry of the approval period is before this date), you will then continue to receive the Back My Build variable rate.
  • If the top up application is assessed and approved post 8 April 2022, or documented post 8 July 2022, the top up will need to be on a separate facility (not on Back My Build variable rate) if you wish to preserve your Back My Build variable rate on the existing lending.

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