Construction Loans in Auckland

Building new or renovating? Construction lending is more complex than a standard mortgage. We make sure it's structured correctly from the start.

Construction Lending

Build with the right finance behind you.

A construction loan works differently to a standard home loan. Instead of receiving the full amount at settlement, funds are released in stages as your build progresses, aligned to your builder's payment schedule. This keeps interest costs down and ensures funds are only drawn when needed.

Not all lenders are comfortable with construction lending, and those that are each have different processes and requirements. We match you to the right lender for your build type and manage the draw-down process throughout your project.

Whether you're building a new home on vacant land, knocking down and rebuilding, or doing a substantial renovation, we can structure the right solution.

This isn't just finance theory for us. Biju holds a Level 4 Certificate in Residential Construction from Unitec, has worked in the building industry, and has completed his own subdivisions and builds, so he understands construction from both sides of the table, not just the loan.

Build finance is easier to plan when the end number is clear. Our mortgage repayment calculator shows what the completed loan will cost you once the final draw is made, and our guide to getting pre-approved for a mortgage covers the approval you want in place before you sign a build contract.

Discuss Your Build Finance

What We Help With

Construction lending, properly structured

Progressive Draw-Downs

Funds are released at agreed build milestones: slab, framing, lock-up, lining, completion. We coordinate with your lender to ensure payments align with your builder's schedule.

Fixed-Price Contracts

Most lenders require a fixed-price building contract before approving construction finance. We advise on what lenders need and how to structure your contract accordingly.

Interest-Only During Build

During construction, you typically only pay interest on the funds drawn down, not the full loan. This keeps your costs manageable while your build is underway.

New Build LVR Benefits

New builds in New Zealand can access more favourable LVR rules, potentially borrowing with a smaller deposit than you'd need for an existing property.

Renovation Finance

Major renovations can also be funded through a construction facility. We assess whether your project qualifies and find the most cost-effective structure.

Turnkey Purchases

Buying off-plan from a developer? Turnkey contracts are simpler than owner-build. Settlement happens on completion. We organise your pre-approval early to protect your purchase.

How It Works

From planning to completion

01

Early consultation

Ideally before you sign any contracts, so we can advise on finance structure, lender requirements, and deposit needs.

02

Loan approval

We prepare your application, secure conditional approval, and brief your lender on the build plan and payment schedule.

03

Draw-down management

As your build progresses, we coordinate each draw-down request between you, your builder, and the lender.

04

Final conversion

When the build is complete, the loan converts to a standard mortgage. We review your options at this point to find the best rate.

What you'll need

Fixed-price building contract with a licensed builder
Signed plans and specifications
Resource or building consent (if issued)
Section purchase agreement (if applicable)
Proof of income and deposit
Evidence of existing equity or savings

Talk to us early, ideally before signing contracts. Getting finance advice upfront can prevent costly surprises later.

Book a Free Consultation

Run The Numbers

Calculators for a build

Mortgage repayment calculator

Work out what the completed loan costs weekly, fortnightly and monthly once every progress draw is made.

How long to repay calculator

Set a repayment figure for after completion and see how long it takes to clear the finished loan.

Reading before you break ground

Guide to getting pre-approved for a mortgage

What lenders assess and how long an approval lasts, which matters when a build runs across several months.

Should you fix your mortgage rate? A 2025 guide for NZ borrowers

Construction lending usually starts floating. This covers how to think about fixing once the build completes.

5.0

80+ Google reviews

What our clients are saying.

Real reviews from real Auckland families we've helped through their mortgage journey.

“Soumya from Indus Mortgages made my first home-buying experience smooth and stress-free. She explained everything clearly, kept me updated at every step, and went above and beyond to secure the best deal.”

“Thanks to Soumya for assisting us to buy our new house. When speaking with Soumya it’s always like talking with a friend. Answers promptly to the calls, though she is busy at times. Highly recommended.”

“Excellent service. They guided us through every step and helped us secure the best option for our home loan. Thanks for the great support, especially for Soumya and Santhosh.”

“Soumya is a very approachable advisor. She did her part very well right from the start. There was regular follow up from her which helped us a lot. All the best to Soumya and the entire Indus Mortgages team.”

“We had a truly wonderful experience with Indus Mortgages as we pursued our dream home. Their friendly approach in discussing the banking process, coupled with their genuine advice, instilled great confidence in our decision.”

“Thank you Indus Mortgages for advising me and helping to land my first home. They are so responsive and patient throughout my journey. I highly recommend Soumya Shine in helping you for advice.”

“We are thankful to Soumya for assisting us to buy our first home. The service provided was excellent. Soumya is always approachable, knowledgable and proactive.”

“I had a great experience with Indus Mortgages. Really helpful for the refinancing of my home loan. Highly recommended.”