Building a home
If you're thinking about building your own home, it's important to have all the information you need before you start. Here are some ideas to get you thinking - and if you'd like more detail on how the home building process works, visit our Learning centre, contact an ANZ Mobile Mortgage Manager or visit any ANZ branch.- Financing your building project
- What we offer
- What we need from you
- Get pre-approved finance
- What loan or combination of loans will suit you?
Financing your building project
Financing a building project is quite different from financing the purchase of an existing home. That's because instead of accessing all of your loan at once, you will usually need to draw on funds throughout each stage of the building process. The maximum timeframe for drawing on funds gradually is 12 months. If you think your building project will take longer than 12 months, discuss your options with an ANZ Mobile Mortgage Manager or visit any ANZ branch. We offer a number of loan features for home builders and renovators, all designed to provide the flexibility you need during your building project:- An interest-only loan will keep your payments lower during the building project
- A loan drawn on gradually will help make budgeting easy
For your loan application and first drawdown:
- A professional registered valuation addressed to ANZ showing the 'as is' (current) value as well as the 'tentative on completion' value (the valuer's estimate of the finished value of your home, based on the land value and your building plans).
- Full costs and quotations including plumbing, electrical, material and labour costs. If you've
chosen not to have a fixed-price contract, you must allow 15% extra for cost overruns.
- Depending on the size of your deposit, a low equity fee may apply (ranging from 0.20% to 1.25% of the loan amount).
- A sale and purchase agreement for the land, or other confirmation that you already own it
- Building consent, including a project information memorandum (PIM).
- Builder's risk insurance - a copy of the builder's all-risk insurance policy or a specific insurance policy covering the property, with ANZ's interest noted.
For each subsequent drawdown:
- A progress valuation - your ANZ Mobile Mortgage Manager or an ANZ home loan specialist will let you know if this is required.
- A builder's invoice.
- A signed progress payment instruction.
For final drawdown:
- Confirmation that the property has full replacement cover insurance (with ANZ noted as the mortgagee) once construction is complete.
- A final valuation confirming that the project is complete and the property's value as per the original valuation.
- A code of compliance certificate. You won't be able to draw down the final 5% of your loan until this certificate is provided.
With an ANZ pre-approved home loan certificate, you'll have our conditional approval to borrow up to a certain amount to buy land or cover your building costs. The certificate will be valid for 120 days from the date of issue and will have some specific terms and conditions.
To find out more about or apply for an ANZ pre-approved home loan certificate:
- send an email to one of our home loan advisors
- phone an ANZ Mobile Mortgage Manager. Our team of Mobile Mortgage Managers are on call seven days a week - and they'll come to you at a time and place that suits you
- visit any ANZ branch
What loan or combination of loans will suit you?
We offer a wide selection of home loans, packed with flexible features that make managing your loan easy. Take a look at the loans available.
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ANZ lending criteria, terms and conditions and fees apply to all loans.
You can ask for more information, including full terms and conditions for all of ANZ's lending products and a current Disclosure Statement, published by ANZ National Bank Limited, at any ANZ branch.
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