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Evidence · Home lending

The questions and original answers

Explore every question and captured response in the home-lending study, including answers asked nationally and from four cities.

questions
193
captured answers
1,094
AI platforms
4
collected
11 October 2026

01

Every question, with its answers

Each question was written as a voter would ask it and went to all four assistants. Some were also asked from a town. Open a question to read every answer to it in full.

Showing 20 of 193 questions

Show all 193

02

The tables behind the study

Every figure on the study page comes from these tables. They are CSV files, which open in any spreadsheet.

  • Question catalogue

    questions.csv

    One row per question.

    Question ID, borrower, exact question, group and collected answers

    193rows

    Download question catalogue (CSV)

  • Answers

    answers.csv

    One row per answer, with its full text.

    Answer ID, question ID, borrower, assistant, city, words, coded recommendations, showed a link and full text

    1,094rows

    Download answers (CSV)

  • Sources by answer

    sources.csv

    One row for each website recorded as a source of an answer.

    Answer ID, question ID, assistant, city, website and publisher type

    4,574rows

    Download sources by answer (CSV)

  • Checks against official sources

    checks.csv

    One row per statement checked.

    Check, answer ID, assistant, what the answer said, verdict, what the source says, source and date

    4rows

    Download checks against official sources (CSV)

  • Recommendation coding

    recommendation-coding.csv

    One row per coded national loan-choice or support answer.

    Answer ID, question ID, borrower, assistant, question group, recommended lenders and supporting passages

    360rows

    Download recommendation coding (CSV)

  • Platform comparisons

    platform-recommendation-counts.csv

    One row per platform, lender and question group.

    Matched panel, recommended answers, denominator and supporting answer IDs

    105rows

    Download platform comparisons (CSV)

  • City comparisons

    city-recommendation-counts.csv

    One row per city, lender and question group.

    Matched panel, recommended answers, denominator and supporting answer IDs

    112rows

    Download city comparisons (CSV)

Use these tables to trace findings back to the original questions and answers. The full text of each answer is also on this page, under its question.

03

Read in full and checked

Some answers were read in detail or checked against official sources. Those appear on the study page, beside the findings they support.

ChatGPT · National

We own land and have chosen a builder to build our home in stages. What matters most to us is keeping the total cost as low as possible. Which lenders would you recommend for the construction loan, and why?

Because you already own the land, have chosen your builder, and want to construct your home in stages, I would focus on lenders that offer competitive construction-period interest rates, low fees, and flexible staged drawdowns. The goal is to minimise the total amount you pay over the entire build, rather than simply finding the lowest advertised mortgage rate.

In New Zealand, construction loans generally allow you to borrow in stages as your builder completes the work. You pay interest on the money drawn down, rather than the entire approved loan from day one. This is particularly useful for a staged build, because you can avoid paying interest on funds you haven't needed yet. Borrowing to build | Home loansApplying for a loan to build

My recommended lenders to compare first

I'd start with ANZ, BNZ, Westpac and Kiwibank, while also checking NBS if your build contract qualifies. Each has a different potential cost advantage.

1. ANZ — first quote for potential rate discounts

Best reason to investigate: discounted lending rates

ANZ's Blueprint to Build package offers discounts of 1.25 percentage points off its standard floating and flexible rates, and 0.60 points off eligible new fixed-rate periods. It also waives certain account fees. Eligibility conditions apply, including salary credits and package registration. Financing your building or renovation projectANZ Blueprint to build package | For new build homes

Why it could save you money: the floating-rate discount may be particularly valuable while the loan is being drawn down in stages.

Check carefully: the package benefits last two years, so ask how long they would apply to your construction period and what rate you would actually receive.

ANZ Blueprint to Build details

2. BNZ — a straightforward staged-drawdown option

Best reason to investigate: flexible access to funds

BNZ lets you draw funds as building stages are completed and pay interest only on the amount borrowed. Interest-only repayments are available during construction, subject to approval. Its published information also describes floating and fixed-rate options. Construction loans - Buying land and building a houseHow to borrow to build a brand-new home

Why it could save you money: you avoid paying interest on the full approved loan before you need the money.

Check carefully: ask BNZ for a specifically priced construction floating rate, any establishment fees and whether your staged contract is eligible.

BNZ construction loan details

3. Westpac — useful repayment flexibility

Best reason to investigate: managing cash flow during the build

Westpac's New Build Loan supports progressive payments to your builder and interest-only repayments during construction. It also describes an option to add accrued interest to the loan balance instead of making repayments immediately, subject to the product's conditions. New Build LoanFinance your project

Why it could save you money: staged drawdowns limit interest on unused funds, and flexible repayments can help you manage your cash flow.

Check carefully: capitalising interest does not make it free; it increases the balance on which you'll pay interest later.

Westpac New Build Loan details

4. Kiwibank — worth including in the comparison

Best reason to investigate: paying interest only as you borrow

Kiwibank explains that its building-loan funds can be drawn down in chunks as construction progresses, helping you avoid interest on money you haven't yet borrowed. The amount approved depends partly on your land's value, build cost and estimated completed property value. Borrowing to build | Home loans

Why it could save you money: it offers the staged funding structure that suits your project.

Check carefully: request a written construction-rate quote and all valuation, administration and loan fees before comparing it with ANZ or BNZ.

Kiwibank borrowing-to-build guide

5. NBS — a potential interest-saving alternative

Best reason to investigate: an advertised interest-free construction period

NBS advertises no interest for the first 18 weeks of its Build Loan, no application fee, and no interim registered valuations for progress payments. However, the offer requires you to remain an NBS client for at least two years, and moving your lending earlier may trigger repayment of the interest foregone plus a $50 administration fee. Minimum 20% equity and other eligibility conditions apply. Home Loans

Why it could save you money: if your build is eligible and progresses within the interest-free period, the initial saving could be meaningful.

Check carefully: confirm that your exact contract and staged construction plan qualify. Don't assume that all types of staged or labour-only builds are covered.

NBS Build Loan details

How I'd choose the cheapest option

I wouldn't declare a winner without getting comparable written quotes. The cheapest lender depends on your loan amount, how quickly the builder draws down the funds, and the rates and fees you're offered.

Ask each lender to quote the same project using these five measures:

Cost factor What to ask
Construction interest rate What floating rate and discounts will you actually receive?
Fees What are the application, establishment, progress-payment and valuation costs?
Drawdown rules Can funds be released for each of our planned stages without extra fees or unnecessary valuations?
Interest-free or discounted periods How long do they last, and what conditions apply?
Post-build mortgage What fixed rates, cashback or refinancing costs apply when construction finishes?

For your priority, I'd pay particular attention to the effective floating rate during construction. A small rate difference can outweigh a modest upfront fee, especially if the build takes a long time. Compare the entire expected cost, including the mortgage after completion, rather than just the introductory offer. Compare construction loans in New ZealandConstruction Loans | Compare and Save on Your Loan for a Home Build

An illustration of why the rate matters

Suppose your average outstanding construction balance is NZ$400,000 over 12 months. A 0.25 percentage-point difference in the interest rate would change interest costs by approximately NZ$1,000 over that period, assuming the balance remains constant.

That is why it's worth negotiating the floating rate as well as asking for a cashback contribution or fee waiver. Remember that a cashback may come with a minimum period you must keep the loan.

One detail would help me narrow this down

Roughly how much do you expect to borrow for the build itself, excluding the land you already own?

That will help me focus the comparison on the lenders and discounts most likely to make a meaningful difference to your total cost.

Ask anything

ChatGPT can make mistakes. Check important info.

Captured 11 October 2026

Gemini · National

We own land and have chosen a builder to build our home in stages. What matters most to us is keeping the total cost as low as possible. Which lenders would you recommend for the construction loan, and why?

When building a home in stages with the primary goal of keeping total costs as low as possible, your choice of lender and loan structure is critical. In New Zealand, financing a staged or custom build is handled differently than buying an existing property.

Understanding How New Zealand Construction Loans Work

Before selecting a lender, it helps to understand how construction loans minimize early costs:

  • Progressive Drawdowns: Instead of receiving the full loan upfront, funds are released in stages (e.g., base, framing, lock-up, interior lining, and final completion) as the work is certified.
  • Interest-Only on Drawn Funds: During construction, you only pay interest on the money that has actually been paid out to the builder, meaning your repayments start small and scale up as the build progresses.
  • The Staged-Build Challenge: Major New Zealand retail banks (ANZ, ASB, BNZ, Westpac, Kiwibank) all offer construction loans, but they can sometimes be rigid regarding tight timeframes, specific contract types, or quantity surveyor (QS) reports. Keeping costs low means avoiding unnecessary lender fees, mandatory valuation costs at every single stage, and expensive non-bank interest rates.

Lender Categories and Recommendations for Lowest Cost

1. Major Trading Banks (ANZ, ASB, BNZ, Westpac, Kiwibank)

  • Why them: For the absolute lowest interest rates and standard establishment fee waivers, one of the major mainstream banks is almost always your best bet. Because they operate at scale, their standard floating and fixed home loan rates are generally more competitive than second-tier lenders.
  • The "Cost-Saving" Catch: They typically require a fixed-price contract and an "as if complete" registered valuation upfront. If you are building "in stages" at your own pace (rather than one rapid, continuous build), you must ensure the bank's progressive drawdown window aligns with your timeline, otherwise you risk incurring loan extension fees or having to re-qualify.
  • Standouts: ANZ and ASB are often noted for having streamlined new-build mobile lending teams and flexible rules around LVR (Loan-to-Value Ratio) exemptions for new builds, which can sometimes bypass standard equity restrictions. Kiwibank frequently offers competitive cash contributions or low fixed rates that can offset initial building costs.

2. Non-Bank Lenders (Avoid for Low Cost)

  • Lenders like: ASAP Finance, Resimac, or Bluestone.
  • Why to avoid if keeping costs low: While non-bank lenders are fantastic for speed, flexibility, or unconventional staged/owner-builder projects where major banks say no, their interest rates and establishment/monitoring fees are significantly higher. Utilizing a non-bank lender will work directly against your goal of keeping the total cost as low as possible.

Actionable Strategy to Keep Your Staged Build Costs Down

To ensure you choose the right specific lender and keep expenses minimal, take the following steps:

  1. Use a Free Mortgage Adviser Specializing in New Builds:
    Independent mortgage brokers (such as Squirrel, Loan Market, or specialized local advisers) have visibility across all major bank construction policies. Because lenders pay the commission, using an adviser is free to you, and they can immediately tell you which major bank currently has the lowest construction rate or cash-back incentive.
  2. Clarify Your "Staged" Definition with the Lender:
    Ensure your broker explicitly asks lenders how they handle pauses between stages. If you are building slowly to pay as you go from cash flow, you need a lender that won't penalize you if a construction stage takes longer than standard commercial timeframes.
  3. Minimize Ancillary Fees:
    Factor in costs that sit outside the loan—such as repeated registered valuer inspection fees for every single drawdown. Choose a bank whose internal progress-payment verification process minimizes the number of paid independent valuations required.
  4. Negotiate Cash Back:
    Major banks frequently offer cash-back contributions (e.g., 0.7% to 1% of the loan amount) upon drawdown completion. Factor this into your overall cost calculations, as it can effectively wipe out thousands of dollars of initial legal or council consent expenses.

Are you planning to finance the land purchase separately from the build, or do you already own the section outright?

Ask Gemini

Gemini is AI and can make mistakes.

Captured 11 October 2026

Google AI Mode · National

We own land and have chosen a builder to build our home in stages. What matters most to us is keeping the total cost as low as possible. Which lenders would you recommend for the construction loan, and why?

Building a home in stages while prioritizing the lowest total cost involves navigating specific lending criteria in New Zealand. Staged builds and non-standard timelines introduce unique risks for lenders, meaning that keeping costs low requires balancing interest rates, fees, and how flexibly a lender handles progressive drawdowns.

Key Considerations for Staged Construction Financing in NZ

  • Progressive Drawdowns: Standard construction loans release funds in stages (e.g., base, frame, enclosed, rough cast, and final) corresponding to fixed-price builder invoices. Building in distinct macro-stages (rather than a single continuous build) means you want a lender who won't penalize you with extra establishment fees or force you onto permanent fixed rates too early while parts of the project are paused. [Canstar NZ]

  • Interest-Only During Build: Most major NZ lenders allow interest-only payments on the drawn-down portion during the construction phase, which preserves cash flow until the build progresses. [Westpac]

  • The "Lowest Cost" Trade-off: Major retail banks (the "Big Four") typically offer the sharpest interest rates and lowest standard fees, but they are rigid regarding fixed construction contracts. Non-bank lenders offer more flexibility for unconventional or staged timelines, but their interest rates and establishment/monitoring fees are significantly higher, driving up the total cost.

Recommended Lender Categories & Why

  1. The Major New Zealand Retail Banks (ANZ, ASB, BNZ, Westpac)
  • Why they keep costs lowest: They offer the most competitive floating and fixed interest rates in the market. During the construction period, they generally charge interest only on the funds actually drawn down for each stage, rather than the entire facility.
  • The Catch for Staged Builds: Major banks heavily prefer a single, comprehensive fixed-price master contract with a registered master builder and standard milestones (e.g., as outlined by Westpac NZ Construction Loans). If your "stages" mean distinct, separate council consents or long gaps between distinct building phases, the bank may treat each phase as a separate application or require a re-valuation, incurring extra loan application/valuation fees.
  • Best approached if: Your staged build is legally tied into a clear overarching fixed-price contract with your chosen builder from day one, even if the physical work is scheduled in distinct intervals. [Westpac]
  1. Specialist Regional or Cooperative Lenders (e.g., Co-operative Bank, SBS Bank, TSB)
  • Why they keep costs competitive: These smaller New Zealand-owned institutions often provide more personalized credit servicing. They can manually review scenarios that fall outside rigid automated credit scoring (common with standard staged or unconventional builds).
  • The Catch: Their standard advertised interest rates might occasionally lag slightly behind the absolute lowest specials of the major Australian-owned banks, but their flexibility can prevent costly administrative roadblocks or forced re-valuations during a prolonged build schedule.
  1. Non-Bank Construction Financiers (Avoid if absolute lowest cost is the goal)
  • Why they are usually unsuitable here: Lenders like ASAP Finance or Resimac offer high flexibility for complex or unusual builds. However, they carry higher interest rates, line fees, and mandatory independent quantity surveyor (QS) inspection costs. Because your primary goal is keeping total cost as low as possible , non-bank higher-margin lending should generally be a last resort. [asapfinance.co.nz]

Strategies to Minimize Costs with Your Chosen Lender

  • Draw down strictly as invoiced: Ensure you only draw funds as each physical stage is completed and invoiced by your builder, avoiding paying interest on unspent capital.

  • Use an offset facility post-drawdown: If you have liquid cash saved during the gaps between building stages, park it in a 100% offset account linked to the active portion of your construction loan to actively reduce daily interest accrual. [Canstar NZ]

  • Clarify re-valuation fees: Ask prospective lenders upfront how many times they require a registered valuer or quantity surveyor to sign off on progress reports during a staged timeline, as these inspection fees ($300–$800+ per visit) add up quickly.

To help narrow down which specific institution will give you the lowest overall pricing, could you share:

  • How far apart the stages of your build will be (e.g., months or years apart)?
  • Whether your builder has provided a single fixed contract covering all the stages, or separate agreements for each phase?
Ask anything

Captured 11 October 2026