Building a home in Tauranga, Mount Maunganui, or Papamoa is exciting — but arranging finance for new construction works differently from buying an existing property. At Best Mortgages, your local mortgage broker in Tauranga, we’ll help you structure the right home-loan solution, manage approvals, and keep your cash-flow on track throughout the build.
Because construction lending carries more risk for lenders, these loans are structured differently from standard mortgages. When a borrower can’t meet repayments on a completed house, the bank can sell the property — but that’s harder with a half-built home. That’s why build finance has special conditions and can vary depending on the type of project and the lender’s policy across the Bay of Plenty.
Traditional Build or Design-and-Build Loans
When you’re building traditionally, you start with an empty section, design your home, and engage a builder. Your loan is based on the estimated value of the finished property, but because the home isn’t yet complete, funds are released in stages (progress payments).
At each stage — foundations, framing, lock-up, and completion — the amount advanced reflects the value of work completed under your builder’s fixed-price contract. The final payment is made once the Code of Compliance is issued and your new home is ready to move into.
Throughout the build you’ll need to provide documents such as registered valuations, council consents, and proof of builder insurance. You start paying interest from day one, but because you only pay on the funds already drawn, your early payments remain smaller and manageable.
As your local mortgage advisor in Tauranga, we’ll coordinate with your bank or non-bank lender to ensure each drawdown is approved on time and your construction stays on schedule.
House-and-Land Package Finance
If you’re purchasing a house-and-land package from a developer, the process is usually simpler. You pay an initial deposit, and the developer carries the cost of construction until completion. When the Code of Compliance is issued, your mortgage begins and repayments start.
Deposit requirements currently range from 10 % to 20 %, depending on the lender, the build type, and your overall financial position. Lenders assess each project individually based on location, contract type, and borrower strength. We’ll compare the major banks and trusted non-bank options to find the most competitive structure for your build in Tauranga or anywhere in the Bay of Plenty.
We’ll Help You Structure Your Build Finance
Whether you’re building in Bethlehem, Pyes Pa, or Papamoa Beach, we’ll guide you through every step — from pre-approval to final handover — and make sure your loan suits your timeline, budget, and long-term goals.
Ready to plan your build finance? Book a free chat today to map out your budget, structure, and drawdown schedule so your build runs smoothly from start to finish.
Whether you’re buying your first home, refinancing for a better deal, or planning your next investment move, now’s the perfect time to get expert advice. Our friendly team at Best Mortgages is based right here in Tauranga and helps Kiwis across the Bay of Plenty make sense of these market shifts. We speak plain English (and a bit of Kiwi slang when needed) and work for you – not the banks – to find the right solution.
Ready to explore your options? Contact us today for a free, no-obligation chat and we’ll walk you through the latest rates, rules, and opportunities tailored to your goals. Let’s turn those property dreams into reality this spring – we’re only a phone call or coffee catch-up away. See our reviews to know why we are called the best. Also stay up to date with our latest news for the best tips and advice.
Best Mortgages — Operated by Ewald Biesenbach (FSP 320426) under The Best Limited (FSP 724451 – NZBN 9429043352067). Licensed under the Financial Services Legislation Act 2019.
How does a construction or build loan work in Tauranga?
A construction loan releases funds in stages as the build progresses — foundations, framing, lock-up, and completion. You usually pay interest only on the money drawn so far, keeping early repayments manageable.
How much deposit do I need for a new build in Tauranga or the Bay of Plenty?
Most lenders currently require between 10 % and 20 % deposit, depending on the project and your financial profile. We’ll compare options across major banks and non-bank lenders to find the most flexible solution.
Can I get a construction loan if I’m building in Papamoa or Mount Maunganui?
Yes — location isn’t an issue. We regularly help clients building in Tauranga, Mount Maunganui, Papamoa, and throughout the Bay of Plenty. Lending policies may differ slightly by region, so we’ll guide you through the best lender for your build.
Do I pay interest during the build?
Yes. Most construction loans are set up as interest-only until your home is complete. Once the Code of Compliance is issued, the loan usually converts to a standard principal-and-interest home loan.
What documents do I need to apply for construction finance?
You’ll generally need a fixed-price build contract, registered valuation, building consents, builder insurance, and evidence of your deposit. We’ll help prepare and submit all paperwork correctly to avoid funding delays.
