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Building your new home

Building a new home can be an exciting challenge, leading to a home that’s perfect for you and your family. This guide covers some of the basics, but always get professional advice before taking the next step.

Three common approaches to building

Turn-Key home and land package

Simplify your build with a complete package of home and land from a developer. An initial deposit is required with the remaining balance paid upon completion.

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Build only

Buy your ideal section and engage a builder to construct your dream home.  There are various options from a standard design to a one-off architecturally designed home. 

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Kitset or pre-fabricated home

Choose a home design, and have it shipped to your site either as a ready-to-build kitset, pre-built components or a complete home.

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Turn-key home and land packages

Buy a home and land package off the plans and take possession of your new property once it’s complete and ready to move in. You normally pay an initial deposit, with the remainder due when you take legal possession of the finished house. 

Pros

  • You usually need to provide a deposit up front before the build starts and no further funds are required until the build ends.
  • You don't pay interest on your loan until you settle, which is a great help if you're already paying rent or a mortgage on your current home during the build.
  • Most design and build companies already have a portfolio of house designs to choose from and this can save time.
  • The price is usually fixed.

Cons

  • Generally house and land packages are only available at certain locations. This can limit your choices.
  • Limited design options means limited customisation and personal touch.

Build only with a wide range of options

Buy your ideal section and engage a builder to construct your dream home. There are various options from a standard design to a one-off architecturally designed home. 

With this option you can engage a builder to build one of the standard designs which may include options for customisation.  Alternatively design and build your new home exactly as you want it. You could turn to an architect, draftsperson or building company for your design, and then engage a builder to bring it to life. 

There are various options for engaging a builder, from a full fixed price contract to a labour only basis. 

Before you begin, you’ll need to find and buy a section - but before you commit to the purchase, talk to us about your finances and whether this option will work for you.  

Pros

  • Includes options for your home to be custom-designed to your exact specifications and taste
  • You have various build contract choices 

Cons

  • Greater complexity than a turn-key home and land package so it’s important you do your homework in advance
  • It's important you make allowance for cost overruns & exclusions in your budget 

Kitset and pre-fabricated homes can provide more options

Buy your ideal section and construct a kitset home, or have a pre-fabricated home delivered and connected on your site. 

A Kitset home is where most of the major components such as framing is prefabricated in a factory and then delivered to your site where it is assembled. It's like putting a large 'kit' together. 

Pre-fabricated home, often referred to as prefab homes or simply prefabs, are manufactured off-site, transported to your section and connected to services.

Both options start with finding and buying your section - but before you commit to the purchase, talk to us about your finances and whether this option will work for you.

Pros

  • Often can be completed faster than other construction methods
  • Most companies have show homes so you can see what you’re getting

Cons

  • Limited opportunities for customisation and adding your personal touch
  • May require payment to the supplier prior to transportation to your site and connection to services. So it’s important you do your homework in advance
  • It's important you make allowance for cost overruns & exclusions in your budget

Other helpful tips for building your new home

Apply for an ASB home loan

Apply online

Ready to take the next step? Apply online and we’ll respond within four business hours.

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We can come to you

Our mobile lending managers cover much of the country.

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Visit a branch

Visit us at one of our many branches across New Zealand.

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Any questions?

We’ll help with your ASB home loan query.

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Call us

Speak with one of our lending specialists 7 days a week.

0800 100 600

ASB’s lending criteria, terms and fees apply.

The above information is a guide only and should not be relied on as it does not take into account your personal financial situation.

Home loans A guide on building a new home | ASB