02 — Construction Loans
Building a New Home?
We Can Help with Finance.
Construction loans are structured differently from standard mortgages — funds are drawn in stages as your build progresses, and lenders require specific documentation at each drawdown. Our team assists builders and homeowners prepare the materials documentation, specifications, and cost breakdowns lenders need to approve and drawdown construction finance.
How Construction Loans Work
Progress Payment Structure
Construction loans release funds in stages — typically slab, framing, lockup, fit-out, and completion. Each stage requires a progress payment claim supported by builder invoices and materials costs. Hanes Distribution provides itemised supply invoices and documentation for every stage.
Materials Cost Breakdown
Lenders require a detailed construction cost schedule at loan approval. We prepare comprehensive materials cost breakdowns across all Hanes product categories — joinery, timber, insulation, plasterboard, and fit-out — aligned to your builder's build programme.
Compliance Evidence for Drawdowns
At each drawdown stage, lenders and quantity surveyors may require evidence that materials meet NZBC standards. We provide CodeMark, BRANZ, BenchMark, and AS/NZS compliance documentation on request for every product we supply.
Supply Scheduling
Construction finance works best when your supply chain is coordinated to match your build programme. We stage material delivery to align with your drawdown schedule — so you're not paying for stock sitting idle, and lenders can verify progress at each claim point.
NZ Construction Loan Overview
| Lender | Construction Loan Type | Key Features | Notes |
|---|---|---|---|
| Major Bank ANZ | Construction home loan | Progress payment structure. Interest only during build. Converts to standard mortgage at completion. | Requires fixed-price building contract, council consent, and quantity surveyor reports at each drawdown stage.Confirm current criteria and LVR requirements directly with ANZ. |
| Major Bank ASB | Build loan | Progress drawdowns aligned to build stages. Interest only during construction phase. Full range of loan structures available. | Requires registered builder, council-approved plans, and full materials cost schedule upfront.Speak to ASB home loan team about your build timeline. |
| Major Bank BNZ | Construction loan | Staged drawdowns. Interest only during construction. Option to fix rate at completion. | Building contract, QS or PM sign-off at each drawdown, council consent documentation required.Confirm current LVR and construction requirements with BNZ. |
| Major Bank Westpac | Building loan | Progress payment structure tied to build stages. Works with independent quantity surveyors for drawdown verification. | Fixed price contract strongly preferred. Insurance requirements during build apply.Talk to a Westpac home loan specialist about your build. |
| Major Bank Kiwibank | Home building loan | Staged drawdowns. Interest only during build. Converts to standard home loan at completion. | Progress claims supported by builder invoices and materials documentation at each stage.Confirm Kiwibank's current construction lending appetite directly. |
| Non-Bank Squirrel / Specialist | Construction facility | More flexible than major banks for non-standard builds or self-builds. Some non-bank lenders will consider owner-builder scenarios. | Terms, rates, and criteria vary significantly. Specialist mortgage advisers recommended for non-standard construction scenarios.Compare multiple non-bank options before committing. |
⚠ Construction loan information is general and indicative only. Specific requirements, LVR limits, and drawdown conditions vary by lender and project. Always work with a registered mortgage adviser for construction finance. Hanes Distribution assists with materials documentation only — not financial advice.
