Construction Loans

Construction Loans

When you have looked at various homes and can’t find the right fit, the next best option is to construct yourself. But, of course, the first question most people ask is how and where to begin, and while building your own home may sound thrilling, it may be frustrating if things don’t go as planned.

You will need to determine the costs of building the home and the documents required for loan approval.

Costs Involved with Building a Home

  • Legal costs
  • Construction costs
  • Purchase of land
  • Building consent
  • Valuation costs
  • Architect fee
  • Resource consent
  • Electricity, gas, and water supply

Documents Required for Approval of a Construction Loan

These are the following documents your bank may ask you to provide:

  • Builder Risk Insurance
  • Building Consent approval
  • House plans
  • Registered valuation
  • Resource Consent approval
  • Fixed Price Building Contract

The Process

Before moving into your new home, there are several steps you’ll need to complete. Don’t worry, Infinity Loans is here to walk you through the process. 

Consulting the Adviser

The first step of home buying is contacting a trusted mortgage adviser like Infinity Loans to establish your borrowing capacity. Your purchasing limit is based on your income, living expenses, fixed commitments, and other financial factors.
During this process, we will give you an indication of the max loan and ideal bank.


The second step is getting pre-approved. We will work closely with you during this process to gather all the information required. Then we will submit your application to your preferred bank and determine your pre-approved lending amount.

Finding the Perfect Property

The third step is finding a suitable property. Once you’ve found the home of your dreams within your pre-approval amount, we will check with the bank if the property is acceptable by the bank as a security.

Sale & Purchase Agreement

Once we get the green light from your bank, you can sign the Sale and Purchase Agreement for the property.
We recommend including a conditional offer as you will need some time to get an appraisal and check if the property best suits your needs. Your solicitor will also need to sign off on the title or other potential legal clauses under the Sale and Purchase Agreement.

Unconditional Contract

As soon as a bank and seller sign off on the property, you can advise your solicitor to confirm to the vendor that the contract is unconditional. This process may take 5-10 working days.

Settlement Date

The final step is Settlement Day. You can choose to change the ownership of the property to your name. We will meet you before the Settlement Day to discuss the ideal mortgage structure, best-negotiated rates, and potential cash offer so that we will be prepared for the big day.