Building your new home

Building a home, rather than buying, might be an option you want to consider because you’ll get a brand new home and it could be exactly the home you want. But building can also be a complex task and you’ll want to have all your bases covered. Here’s a quick guide that may help. It’s just a starting point so please get professional advice before taking the next step.


Different ways to build your new home

There are generally three different ways to build your home and each has pros and cons. You’ll need to do your own research but we’ve put together a quick outline of some options.

Home and land packages make building easier

Design and build companies usually manage the construction process from start to finish – from getting consents and project management, right through to build and landscaping. They usually offer a range of standard design options on their houses. Some companies will let you make variations and also allow you to buy your own section


  • Most design and build companies already have a portfolio of house designs to choose from and this can save time.
  • You can usually personalise your colours, fixtures and fittings within a limited range.
  • The price is usually fixed.
  • Building is usually completed faster than for custom-designed homes.


  • Generally house and land packages are only available at certain locations. This can narrow down the choices you have for where you decide to live.
  • Limited design options means limited customisation and personal touch.

Kitset homes could be a cheaper option

Kitset homes usually come with the plans and all the materials needed to build your home, including bathroom and kitchen fittings. It’s up to you (or your builder) to manage the construction and tradespeople, including getting any building consents. Some kitset-home companies will allow minor variations at no extra cost. With a kitset home, you usually have to buy your own section.


  • If everything goes to plan this could be the cheapest option for building your own home.
  • Kitset homes may be completed faster than custom-designed homes if everything goes smoothly.
  • Most companies have sample homes so you generally know what you’re getting.


  • Limited design and materials, which means limited customisation and personal touch.
  • Could be difficult to find good, reliable tradespeople.
  • Any mistakes or delays could increase your costs. 

A customised home captures your unique style

With this option you design and build your home exactly as you want it. You’ll work directly with a builder, designer, architect and tradespeople – and do everything from scratch, including creating a budget, getting contract works insurance and buying a section.

You could manage the project yourself, hire a project manager, or your builder may do it for you at extra cost. This could be the option that requires the most work (and more involvement from you), but may also be the most rewarding.


  • Your home is custom-designed to your exact specifications and taste.
  • You have more control over aspects of the design and build.


  • Possibly the most expensive option and may take longer to build to your exact specifications.
  • Could be difficult to find good, reliable tradespeople.
  • Delays and cost over-runs can happen, which may be costly.
  • Having to be on site frequently if you manage the project yourself.

Top tip:

Do your research and choose your suppliers very carefully. They are the people who will make (or break) your home-building project.


Finance your new build with an ASB home loan

We have different types of home loans to finance your new home. Everyone’s situation is different so talk to us before you build and let us work out a home loan to suit you.

Benefits of an ASB home loan

  • Competitive interest rates.
  • A choice of loan terms – from 6 months to 30 years.
  • Building a home could be a good option if you are planning to live in the home and have less than 20% deposit. New construction loans are exempt from LVR restrictions, provided your loan is approved before you start building. There are some situations where exemptions don’t apply, so talk to us before committing so you understand your options.

There are other benefits to an ASB construction loan for Fixed Price Contracts.

  • If a registered master builder or a certified builder is building your home on a fixed price contract, you can draw down your loan as your builder invoices you for each stage. That way, you’re not paying interest on the full amount through the building process. We'll need only one registered valuation - one full registered valuation up front, and then a completion certificate when all the work is finished. The valuation will need to be completed by an approved registered valuer using our panel valuation service. We can organise this on your behalf.
  • You’ll also be able to drawdown your loan before a code of compliance certificate is issued.

Talk with an ASB home loan specialist today.

Did you know?

You could be eligible for a KiwiSaver HomeStart grant of up to $5,000 to purchase an existing home, or up to $10,000 when building a new home or purchasing a newly built home.

If you’re building or purchasing a newly built home with someone else and they are also eligible, you could get up to $20,000 between you. Check here to see if you and the property might be eligible.


Getting insurance for your new build

Before any work begins, it’s a good idea to get contract works insurance to protect your building site in case something goes wrong while your home is being built.

It’s also worth checking that your builder has public liability insurance, which usually covers accidental third party damage or injury. If you’re getting a mortgage to finance the building of your home, then you’ll need insurance as most banks (including ASB) wont lend without it.

Keeping your home protected when it’s built

When your home is built, you’ll need to keep it insured. Check out ASB’s home insurance to protect your home. You may also like to get contents insurance – which not only covers your personal belongings, but your home’s furnishings as well.


Other helpful tips for building your new home

Apply for an ASB home loan

Apply online

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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

Other helpful guides

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 Building your new home