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Back My Build variable rate

Whether you’re building your first home or dream home, our Back My Build variable rate could help get your building plans off the ground.

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Back My Build variable rate

ASB Back My Build variable rate applies to home loan for up to 3 years from initial drawdown. Rate may change at any time.

ASB Back My Build variable rate

ASB Bank Limited’s lending criteria and terms apply. Loan processing fee of up to $400 and a Low Equity Margin may apply. Only available on term loans for building a new residential home.

A variable rate for new residential homes

Whether you’re purchasing a home and land package or building your dream home, the Back My Build variable rate might be perfect for you.

The Back My Build variable rate applies from your initial drawdown and lasts for up to 3 years. The Back My Build variable rate is variable, meaning it can change at any time including during the period and prior to first draw down, but you can also choose to move to fixed rate pricing at any time. Once the Back My Build variable rate ends, you’ll automatically roll on to the Housing variable rate.

The Back My Build variable rate is for up to 36 months. The period starts at first draw down. The final day of the Back My Build variable rate for each customer is either 36 months from the first drawdown date; the date that the customer switches from the Back My Build variable rate to another Interest Rate (e.g a fixed rate term); or 30 November 2025, whichever comes first.

Get $2,000 when you build a 6 Homestar rated home

We’ve partnered with the New Zealand Green Building Council to encourage green and sustainable building practices for healthier, happier Kiwis. To celebrate, ASB will give customers who finance their new build with a Back My Build variable rate home loan a cash contribution of $2,000 if they can evidence their intent to build 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, you’ll need to have a Back My Build variable rate home loan with minimum new lending of $250,000 or more and you must evidence that you are working through the Homestar process or that the property is Homestar certified.

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.

What are the further terms and exclusions of the Back My Build Variable Rate?

  • It is designed for new residential housing and rental properties builds only.
  • Houses built under the government’s Kiwi Build programme are eligible for the Back My Build variable rate.
  • Commercial properties are not eligible for the Back My Build variable rate. The Back My Build variable rate is also not available for developers.
  • Cannot be used solely for vacant land purchase, however you can refinance land to the Back My Build variable rate when drawing down funds for construction.
  • You have the option to move to fixed term pricing at any time after you have drawn down on the Back My Build variable rate. However, once you have moved from the Back My Build variable rate to fixed term rate pricing you cannot revert to the Back My Build variable rate again.
  • Is not available on Orbit and Orbit Fast Track. Available on ASB Home Lending Term Loans.
  • This Back My Build variable rate is not available on fixed rate lending.
  • The Back My Build variable rate is not available for renovations. Renovations are not eligible regardless of how substantial they are.
  • First Home Buyers that take up the Back My Build variable rate are not eligible to receive the $2,000 First Home Buyer cash contribution.
  • Once a loan is fully drawn down you cannot switch to the Back My Build variable rate.

Frequently asked questions

  • Can the Back My Build variable rate change?

    Yes. The Back My Build variable rate is variable meaning it can change at any time.

  • Can I use it for renovations?

    No, the Back My Build variable rate is for new builds only. Renovations are not eligible regardless of how substantial they are.

  • Can I use it for a home and land package?

    Yes, you can access the Back My Build variable rate for home and land packages. However, to be eligible you must purchase the completed property from the developer within six months of the property being issued a code of compliance certificate.

  • Can I get the Back My Build variable rate if my house is built under the government’s Kiwi Build programme?

    Yes you can.

  • Does Low Equity Margin (LEM) pricing apply?

    Yes they apply for loan to value ratios on lending above 80%. Our LEM pricing can be found here.

  • Can I get the Back My Build variable rate to build rental properties?

    Of course, the Back My Build variable rate is to help build more house regardless of whether you are going to live in them yourself or rent it out. However, Commercial properties are not eligible for the Back My Build variable rate. The Back My Build variable rate is also not available for developers.

  • Can I access the Back My Build variable rate for buying a new ‘Spec’ house (one that nobody has yet occupied), but it isn’t a home and land package or construction loan?

    Yes, provided that the property is purchased from the developer within 6 months of the construction being completed (date that Code of Compliance Certificate issued) you will be entitled to the Back My Build variable rate.

  • What does ‘up to’ 3 years mean in terms of how long the rate is available?

    The Back My Build variable rate is for up to 36 months for each customer. The period starts at first draw down. The final day of the Back My Build variable rate for each customer is either 36 months from the first drawdown date; the date that the customer switches the from the Back My Build variable rate to another Interest Rate (e.g a fixed rate term); or 30 November 2025, whichever comes first.

  • Do I get the Back My Build variable rate for 3 years for each of my draw downs on my construction loan?

    No, the 3 years of the Back My Build variable rate starts on the date of the first draw down, if the final draw down is 12 months after the first draw down you will only get up to 2 years on the final drawn down amount. The final day of the Back My Build variable rate for each customer is either 36 months from the first drawdown date; the date that the customer switches the from the Back My Build variable rate to another Interest Rate (e.g a fixed rate term); or 30 November 2025, whichever comes first.

  • Once on the Back My Build variable rate, can I choose to move to fixed term rate pricing instead if I want to?

    Yes you can move to fixed term rate pricing at any time after you have drawn down on the Back My Build variable rate. However, once you have moved from the Back My Build variable rate to fixed term rate pricing you cannot revert to the Back My Build variable rate again.

  • Can I switch my existing ASB lending to the new Back My Build variable rate?

    No you cannot switch existing lending to the new Back My Build variable rate (except existing vacant land lending). If you have an existing ASB progress payment construction loan that is not fully drawn down then yes you can restructure to the Back My Build Variable rate.

  • What happens when I reach the expiry date for my Back My Build variable rate?

    When you reach the expiry date for your Back My Build variable rate, your loan will automatically move to the ASB housing variable rate.

  • Can I switch from my existing ASB construction home loan to the Back My Build variable rate?

    If you have an existing ASB progress payment construction loan that is not fully drawn down then yes you can restructure to the Back My Build Variable rate.

  • If I haven’t fully drawn down my current home loan can I switch to the Back My Build variable rate?

    Yes you can restructure to the Back My Build variable rate.

  • If I have fully drawn down my current ASB home loan can I switch to the Back My Build variable rate?

    Once fully drawn down on your existing ASB home loan, you cannot switch to the Back My Build variable rate.

  • Can I get a cash contribution on top of the Back My Build variable rate?

    There are no cash contributions available on top of the Back My Build variable rate. However, ASB will give customers who finance their new build with a Back My Build variable rate home loan a cash contribution of $2,000 if they can evidence their intent to build a 6 Homestar rated home (or higher). Evidence will be required that your new home meets the 6 star Homestar rating or higher, which is substantiated by it’s registration within the Homestar program and receipt of registration payment. To be eligible for the cash contribution, you’ll need to have a Back My Build variable rate home loan with minimum new lending of $250,000 or more and you must evidence that you are working through the Homestar process or that the property is Homestar certified. For more information, terms and conditions please see here

  • Is there any support from ASB I can get for building a ‘greener’ home?

    Yes there is. ASB will give customers who finance their new build with a Back My Build variable rate home loan a cash contribution of $2,000 if they can evidence their intent to build a 6 Homestar rated home (or higher). Evidence will be required that your new home meets the 6 star Homestar rating or higher, which is substantiated by it’s registration within the Homestar program and receipt of registration payment. To be eligible for the cash contribution, you’ll need to have a Back My Build variable rate home loan with minimum new lending of $250,000 or more and you must evidence that you are working through the Homestar process or that the property is Homestar certified. For more information, terms and conditions please see here

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