When you are building a new house it is always better to have someone on your side who understands the whole new build process, someone that has done their own new build and also is an expert mortgage adviser knowing all the details on the way new build finance works.
Of course you could go directly to a bank, but you would never know if you are offered the best new build finance options. Anyone working at a bank can only offer you the options that the specific bank offers and it would be lucky if you approached the right bank too.
You could also go to a mortgage adviser (broker) and see what they can offer, but how many mortgage advisers actually tick all the boxes. How many have the experience with new builds and the challenges that may happen when building.
But who should you approach to help?
Your New Build Finance Expert – Stuart Wills
Stuart wills is an Auckland mortgage adviser with Mortgage Managers, and has been in the industry since 1997. He has been around arranging finance for over 25-years and knows all about new builds and the challenges with getting the right finance for any specific type of build.
As a mortgage broker (adviser) he is also one of the few that has not worked at a bank, and while some industry people might think this is a disadvantage it does mean that he thinks like an ordinary Kiwi with a “can do” attitude.
Why Not Use Your Bank?
We know that many Kiwis will go to their existing bank to discuss finance as they expect that there is some loyalty with the bank and more importantly as the bank has “history” it will make the process easier.
In many cases it may be easier, but that does not mean it will be better.
For most Kiwis that decide to build a new home this is a new experience, so having someone that knows what they are doing with both dealing with the building companies and dealing with the finance can certainly be a great help and more importantly save you stress and money.
What Is New Build Finance?
When we talk about “new build finance” we are talking about a concept – finance to fund the building of a new house.
Most banks and other non-bank lenders will finance a new build, but they have different focus and lending criteria.
There are some people that claim to provide a ‘one stop shop’ for new build finance, but in my experience this limits you options.
When I talk about new build finance I am talking about the loans for financing the building of a new house. This is not a specific bank (or lender) and instead creating a finance package to do what you want it to do – to get the right outcomes.
Just like your builder will probably bring in experts to do certain jobs (think electrician, plumber etc) you should not rely on a bank or your standard mortgage adviser to be your “expert” – instead you should speak to an adviser that is a specialist in the area of financing new homes.
There are not many around, but I have a lot of experience dealing with new build finance.
Why Talk To Me – Stuart Wills
As mentioned, you can arrange your own finance or have some person at the bank arrange finance for you.
Or, you can contact me.
But why would you contact me – a mortgage adviser?
First of all you have nothing to lose – I will speak to you and it costs you nothing. In most cases I can arrange new build finance for you with a bank and then the bank pays us so there is zero cost to you.
I have build my own new house so I can share my experiences and ideas with you.
There are some tips that I can share with you about the building process, the build contract and of course the financing of your new build too.
A good mortgage adviser like myself will put your interest first where the banks typically suggest that you structure the lending in a way that fits the banks criteria, but often that does not suit want you want or help in situations where things do not go exactly to plan.
As an experienced adviser with personal experience I look at things from your point of view and will structure things so the banks are more likely to accept what you want.
The New Build Website
I created this website to help you.
There is a real gap in the market where banks and most mortgage advisers have minimal experience in providing new build finance.
They say that its not too hard and base things on the similarities with your typical home loan, but there are also some big differences that you need to be aware of.
Sarah recently contacted me to ask a question about their finance. I have known Sarah for a long time and we worked together once, but she now works for a major bank and so had arranged her finance for a new build with the bank she works for. While it seems that things were going okay, she contacted me very frustrated that she is living in a caravan onsite and although their new house is totally completed (with a completion certificate) the bank will not let them move in until the Auckland Council issue the Code of Compliance Certificate (CCC) and that could still be a few weeks away.
Yes, this is bank policy and not unique to any specific bank but it is something that should have been addressed when the loan was first arranged.
I would assume that the person at the bank had not even thought about how stressful and frustrating this would be. They would hide behind the fact that this is bank policy and probably do the same for the next finance application for a new build too.
As a specialist mortgage broker I know that this would be frustrating and I also know how to work around it so it does not become a problem. When we built our own new home recently we moved into the new home once the house was completed, but well before we had the Code of Compliance Certificate (CCC). Our house was completed just before Christmas so waiting for the CCC could have meant waiting for over a month and maybe closer to two months.
In short, unfortunately Sarah had spoken to someone at the bank that lacked experience in financing new homes for people.
Let’s Remove The Stress!
Building your new home should be fun.
It should be a time when you focus on the project of building your new home, not stressing about the finance.
It is important to ensure that you have enough finance to build the house that you want, but it is more important to ensure that you have the right types of loans that provide the money that you need at the time that you need it.
You need to understand the finance requirements during the build, and when and how to restructure the finance too.
New build finance is not the same as your typical home loan and that’s one reason that you should have a specialist mortgage adviser on your team.