Financing a House and Land Package


Understanding the Financial Aspects of House and Land Packages

Embarking on the journey of building your own home is a dream for many, but it involves significant effort. From locating suitable land to overseeing the construction process, it can be a daunting task, compounded by the unpredictability of unforeseen challenges and potential budget overruns.

However, when faced with challenges, opportunities arise, and this is where house and land packages come into play. Including benefits such as reduced maintenance costs and the assurance of no major repair bills in the near future, these packages simplify the process of investing in a new build, making it straightforward, secure, and efficient. Moreover, developers often provide options for standard or custom-built homes, allowing buyers to have a say in their property’s design and location.

In the end, opting for a house and land package ensures that you receive a home tailored to your lifestyle, ready for move-in upon completion. Moreover, financing such packages differs slightly from traditional mortgages, making it particularly appealing for first-home buyers.

Here’s what you need to know about financing a house and land package:

Reduced Deposit Requirements

In New Zealand, while most first-home buyers typically require a 20% deposit, house and land package new builds enjoy exemptions from Reserve Bank’s LVR restrictions, allowing buyers to secure a brand-new home with a lower deposit requirement of 10%.

Construction Loan Borrowing

Financing a home construction project involves two main steps: purchasing the land and building the house. While land purchase follows a standard real estate transaction requiring a regular home loan, construction financing involves a specific construction loan tailored for funding new home builds. House and land packages streamline these loans into one, with payments disbursed progressively throughout the construction process, minimizing interest payments until completion.

Building Contracts and Payment Management

Your building contract should align with your loan agreement, outlining all land and construction costs for your lender’s clarity. Payments are usually scheduled based on various construction milestones, with lenders agreeing to advance payments to ensure continuous progress. Delays in payment could result in work stoppages or penalties, highlighting the importance of timely payment management.

Leveraging KiwiSaver Benefits

First-home buyers may leverage their KiwiSaver accounts to contribute towards house and land package payments. Additionally, eligibility for a KiwiSaver HomeStart grant could provide further financial assistance, subject to property value and income criteria.

Preparedness for Delays

Despite meticulous planning, unforeseen delays due to weather, regulatory requirements, or material shortages can occur. Maintaining a financial buffer within your budget can help mitigate the impact of such delays.

Final Payment and Completion

Upon practical completion of your home, the final payment is typically required. This marks the culmination of months of hard work by your building team, signaling the transition from construction to occupancy.

In conclusion, house and land packages offer a straightforward and stress-free path to owning a modern home, suitable for both first-home buyers and property investors. For seamless financing, partnering with a knowledgeable mortgage broker experienced in construction loans is crucial.

Considering a house and land package? Contact us at Swift Mortgages for an expert guidance.

Disclaimer: These guidelines are general and may not reflect specific bank or lending policies. Always consult with a qualified financial advisor for personalized advice.

Hear what our clients have to say!

Swift Mortgages
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matt simmatt sim
07:10 03 Apr 24
My encounter with Swift Mortgages was nothing short of outstanding! Meysum's professionalism and unwavering assistance throughout the process were truly remarkable. He kept me informed and executed tasks promptly, streamlining the entire experience. I wholeheartedly endorse Swift Mortgages for their unparalleled service. They undoubtedly set the standard for excellence!
sushil chandsushil chand
00:10 02 Apr 24
What an amazing experience dealing with Swift Mortgages. Izaz was very professional and very helpful during the whole process. He kept us informed and act promptly. He made the whole process so easy.We strongly recommend Swift Mortgages they are the best.
Dipendra TuladharDipendra Tuladhar
03:31 19 Mar 24
We stumbled upon swift with a reference from a family friend.We were lucky to have Joyce as our Advisor on achieving the goal of our lives. Swift (Joyce) was there for us through out our process until and also after shifting to our First home, guiding and providing with the information and knowledge which we needed to make the best of decisions that would suit our need.I highly recommend choosing Swift for all of the service they provide.
Monisha PrasadMonisha Prasad
00:32 19 Mar 24
Swift Mortgage are exactly what we needed. I would 100% recommend to anyone who wants that peace of mind, reassurance and confidence in the buying first home . We are grateful we found IZAZ and will seek to use only him again in the future. We highly recommended him, He is highly professional, prompt, efficient and clear with communication.Responds quickly, understands the requests, communicates well and gets the job done under pressure... He knows what he is doing and does it in a timely manner.Thank you so much IZAZ Bhai for making our dream come true
Zureen TahirZureen Tahir
05:33 18 Mar 24
Very happy. We are off shore, and Izaz got onto our refix along with getting us better rates then what ASB offered online.Highly recommend
Ma Marita EndayaMa Marita Endaya
22:27 17 Mar 24
My family and I are very pleased with Joyce Ram as we experienced 101% of her support in every step our first home loan journey and timely release of our bank finance. Joyce is super reliable; truly exceeded our expectations. Highly recommended!! 👍👍👍
Shaleshni DeoShaleshni Deo
02:45 14 Mar 24
Hi Ranjana, Thank you so much for the tremendous support and assistance you provided last year; it meant a lot to us. I apologize for not being able to express our gratitude in person due to the busyness of last year. We're truly grateful for the lovely house we purchased with all your guidance and support. We're now comfortably settled and in the process of turning it into a true home, although that journey may take some time. Once again, thank you sincerely for all that you've done for us.From: Shaleshni and Avinesh
Len MoodleyLen Moodley
03:30 20 Feb 24
I had a very pleasant experience with Swift mortgages. The team is very well experienced and professional. Izaz assisted me with my mortgage and several other things over the past 2 years and his service was excellent. His attention to detail, knowledge and experience truly assisted me in making great decisions. I highly recommend this company. So glad I was referred to them. They are a one stop shop for my financial wellbeing.
Devita SamiDevita Sami
19:57 28 Nov 23
Our heartfelt gratitude to Joyce Ram who provided an exceptionally outstanding advice and support all throughout our journey to make this possible in buying our first dream home. Thanks Joyce, you were amazing, accommodating and very responsive to all our little concerns and questions. You made us realise that it is not difficult to become home owners and getting loan is not that hard. We know you went above and beyond to assist us find the best home and get our home loan approved. You are always welcome home and I would recommend Swift mortgage company for its best customer service to whoever wants to buy their dream home. Again thank you for your tremendous support and service Joyce.

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