What can a construction loan be used for?

A construction loan can be used to fund new builds, spec builds, owner-builder projects, renovations, subdivisions, remedial works, and other property development projects. It is often used as short-term finance to complete the work before the property is sold, refinanced, or moved into long-term lending.

Is a construction loan different from a standard home loan?

Yes. A construction loan is usually assessed differently from a standard home loan because lenders consider the project costs, build timeline, property value, borrower contribution, whether interest is compounded or serviced monthly, and the exit strategy. Funds may also be released in stages as work is completed, rather than paid as one lump sum.

Can a construction loan be used for renovations?

Yes. A construction loan or renovation loan can be used to fund property improvements, remedial works, extensions, and short-term do-ups. This can be helpful when the goal is to add value to the property before refinancing, selling, or holding it as a rental investment.

Can Non Bank lenders help with property development loans?

Yes. Non Bank lenders may provide property development loans when traditional banks cannot assist or when the project falls outside standard lending criteria. This can include short-term developments, non-CCC properties, leaky buildings, earthquake-damaged homes, contaminated properties, or projects requiring more flexible funding.

What happens after the construction or development work is completed?

Once the work is completed and signed off, the property may be sold, retained as a rental, or refinanced with a longer-term lender. Many borrowers use short-term construction finance to complete the project, then move into a more permanent loan structure once the property is finished and its value has improved.

Development & Construction Loans NZ

Short term development & home construction finance

If you are planning a build, renovation, or development project, securing the right construction loan or development loan is essential. At NonBank, we help clients across New Zealand with spec builds, owner builds, renovations, subdivisions, and other short-term property projects.

Whether you are upgrading a property or undertaking a larger project, flexible funding such as property development loans can provide the short-term finance needed to complete the work and move forward.

Flexible Construction and Renovation Loan Solutions

Kim and the team at NonBank assist with a wide range of projects, including spec builds, owner-builder projects, short-term do-ups, subdividing larger sites, and securing land for future development.

Depending on the project, a renovation loan or renovation construction loan can help fund improvements that add value, allowing you to refinance or sell once the work is complete. Where timing is critical, we can also help with owner occupied lending.

Specialist Property Development Loans for Unique Projects

We have also built a strong client base in niche areas such as earthquake-damaged homes, non-CCC properties, leaky buildings, and contaminated homes.

Some clients specialise in these projects as a business, while others use them as long-term rentals or as a way into home ownership. In many cases, tailored property development loans are needed to reflect the condition of the property and the work required.

This type of development loan is often short term, with Non Bank lenders commonly requiring a 35% to 40% deposit or additional security. This allows time for the work to be completed before the property is sold or refinanced, once finished.

Work With a Team That Understands Construction Finance

Securing the right construction loan can be challenging when traditional lenders make the process difficult. Our team focuses on practical solutions that help get projects moving and funding structured properly from the start.

Reviews

What clients say about Danielle

“I am so completely impressed with the whole lending process, how quickly everything was done and monies paid out immediately. Danielle made the whole process so easy taking all the stress out of it for me. She kept in constant contact and was positive and uplifting the whole way through. I’m 100% impressed and would return for further help in future. Thank you so much!”
NonBank clientAdviser: Danielle Happy
“My Family and I highly recommend Danielle Happy and Non Bank Ltd. We called Danielle in a desperate need for financial help when our finances didn't align with settlement of our new home. Danielle reached out to many different providers and found the one who would work with us through our tricky situation. She was so easy to deal with and put our stress at ease through her caring nature.”
NonBank clientAdviser: Danielle Happy
“Several years on from that first property, we got in contact again for our next project, and Danielle has tackled another complicated mortgage arrangement with unwavering dedication and hard work. Danielle is amazing at patiently guiding you through the complexities, and ensuring you understand each step. Her commitment to finding solutions and going the extra mile is unmatched, specially in situations were others would assign it to the too hard basket.”
NonBank clientAdviser: Danielle Happy

Commercial development & construction loans