Best Way to Structure Your Luxury and/or Hill Build

Are you looking at building your dream property on an impressive piece of land? You'll need to consider a few elements before embarking on the exciting journey.

Embarking on the journey of building a luxury home or one perched on a hill is an exciting venture, but securing the right mortgage for such endeavors comes with its own set of considerations.

At NZ Mortgages, our specialized construction finance team is well-versed in navigating the complexities of financing high-value builds, having facilitated numerous transactions for homes valued at $3.5 million and beyond.

When delving into construction and lending projects surpassing the $1.5 million mark, it's important to note that most banks classify these properties as luxury builds. This classification triggers distinct policies, often requiring a slightly larger deposit from the borrower. In the realm of luxury builds, it's not uncommon for banks to require a deposit in the range of 20% to 25%, depending on various factors, including the borrower's ability to repay the loan.

The size of the deposit is not the only consideration; the overall lending process for luxury and hill builds involves a meticulous assessment of the borrower's financial capacity. This scrutiny ensures that the borrower can comfortably manage the repayments associated with a higher-value mortgage.

The term "luxury build" encompasses more than just the price tag; it extends to the unique features and specifications of the property. Hill builds, in particular, bring additional considerations, such as geological assessments and specialized construction requirements for elements such as the foundations, property access, plumbing, & drainage to name a few.

Our dedicated team at NZ Mortgages understands the intricacies of securing financing for luxury and hill builds. We work closely with clients to navigate the specific requirements set forth by banks, ensuring a seamless and well-supported financing process. Our goal is to empower clients to turn their dream homes into a reality, regardless of the complexities involved.

While luxury and hill builds present a distinct set of challenges in the financing realm, our team stands ready to guide you through the process. From understanding deposit requirements to addressing unique property specifications, NZ Mortgages is your trusted partner in realizing the vision of your dream home.

Arrow pointing up