Back My Build

Back My Build is a new product offered exclusively by ASB and AIA/Sovereign which offers a super low 1.79% variable home loan rate for new builds in an effort to stimulate the appetite for people buying or building new homes.

This rate will be available for up to three years from when the customer makes their first draw-down. A variable rate means customers are also free to make lump sum payments or fix their rate at any time.

The Back My Build variable rate is variable, meaning it can change at any time including during the period and prior to first draw down, but you can also choose to move to fixed rate pricing at any time. Once the Back My Build variable rate ends, you’ll automatically roll on to the Housing variable rate.

The Back My Build variable rate is for up to 36 months. The period starts at first draw down. The final day of the Back My Build variable rate for each customer is either 36 months from the first drawdown date; the date that the customer switches from the Back My Build variable rate to another Interest Rate (e.g a fixed rate term); or 30 November 2025, whichever comes first.

Back My Build is an excellent new product which is already assisting a lot of borrowers into new homes. There are a few things to consider here so make sure you get in touch with Sam Kodi Team to see what we can do for you.

A Guide to Back My Build

Can the Back My Build variable rate change?
Yes. The Back My Build variable rate is variable meaning it can change at any time.
Can I use it for renovations?
No, the Back My Build variable rate is for new builds only. Renovations are not eligible regardless of how substantial they are.
Can I use it for a home and land package?
Yes, you can access the Back My Build variable rate for home and land packages. However, to be eligible you must purchase the completed property from the developer within six months of the property being issued a code of compliance certificate.
Can I get the Back My Build variable rate if my house is built under the government’s Kiwi Build programme?
Yes you can.
Does Low Equity Margin (LEM) pricing apply?
Yes they apply for loan to value ratios on lending above 80%. Our LEM pricing can be found here.
Can I get the Back My Build variable rate to build rental properties?
Of course, the Back My Build variable rate is to help build more house regardless of whether you are going to live in them yourself or rent it out. However, Commercial properties are not eligible for the Back My Build variable rate. The Back My Build variable rate is also not available for developers.
Can I access the Back My Build variable rate for buying a new ‘Spec’ house (one that nobody has yet occupied), but it isn’t a home and land package or construction loan?
Yes, provided that the property is purchased from the developer within 6 months of the construction being completed (date that Code of Compliance Certificate issued) you will be entitled to the Back My Build variable rate.
What does ‘up to’ 3 years mean in terms of how long the rate is available?
The Back My Build variable rate is for up to 36 months for each customer. The period starts at first draw down. The final day of the Back My Build variable rate for each customer is either 36 months from the first drawdown date; the date that the customer switches the from the Back My Build variable rate to another Interest Rate (e.g a fixed rate term); or 30 November 2025, whichever comes first.
Do I get the Back My Build variable rate for 3 years for each of my draw downs on my construction loan?
No, the 3 years of the Back My Build variable rate starts on the date of the first draw down, if the final draw down is 12 months after the first draw down you will only get up to 2 years on the final drawn down amount. The final day of the Back My Build variable rate for each customer is either 36 months from the first drawdown date; the date that the customer switches the from the Back My Build variable rate to another Interest Rate (e.g a fixed rate term); or 30 November 2025, whichever comes first.
Once on the Back My Build variable rate, can I choose to move to fixed term rate pricing instead if I want to?
Yes you can move to fixed term rate pricing at any time after you have drawn down on the Back My Build variable rate. However, once you have moved from the Back My Build variable rate to fixed term rate pricing you cannot revert to the Back My Build variable rate again.
Can I switch my existing ASB lending to the new Back My Build variable rate?
No you cannot switch existing lending to the new Back My Build variable rate (except existing vacant land lending). If you have an existing ASB progress payment construction loan that is not fully drawn down then yes you can restructure to the Back My Build Variable rate.
What happens when I reach the expiry date for my Back My Build variable rate?
When you reach the expiry date for your Back My Build variable rate, your loan will automatically move to the ASB housing variable rate.
Can I switch from my existing ASB construction home loan to the Back My Build variable rate?
If you have an existing ASB progress payment construction loan that is not fully drawn down then yes you can restructure to the Back My Build Variable rate.
If I haven’t fully drawn down my current home loan can I switch to the Back My Build variable rate?
Yes you can restructure to the Back My Build variable rate.
If I have fully drawn down my current ASB home loan can I switch to the Back My Build variable rate?
Once fully drawn down on your existing ASB home loan, you cannot switch to the Back My Build variable rate.
Can I get a cash contribution on top of the Back My Build variable rate?
There are no cash contributions available on top of the Back My Build variable rate. However, ASB will give customers who finance their new build with a Back My Build variable rate home loan a cash contribution of $2,000 if they can evidence their intent to build a 6 Homestar rated home (or higher). Evidence will be required that your new home meets the 6 star Homestar rating or higher, which is substantiated by it’s registration within the Homestar program and receipt of registration payment. To be eligible for the cash contribution, you’ll need to have a Back My Build variable rate home loan with minimum new lending of $250,000 or more and you must evidence that you are working through the Homestar process or that the property is Homestar certified. For more information, terms and conditions please see here
Is there any support from ASB I can get for building a ‘greener’ home?
Yes there is. ASB will give customers who finance their new build with a Back My Build variable rate home loan a cash contribution of $2,000 if they can evidence their intent to build a 6 Homestar rated home (or higher). Evidence will be required that your new home meets the 6 star Homestar rating or higher, which is substantiated by it’s registration within the Homestar program and receipt of registration payment. To be eligible for the cash contribution, you’ll need to have a Back My Build variable rate home loan with minimum new lending of $250,000 or more and you must evidence that you are working through the Homestar process or that the property is Homestar certified. For more information, terms and conditions please see here

OTHER RESOURCES

Buying a new home is an exciting time but managing your mortgage needs from one property to another can be a bit of a juggling act. And as with all juggling acts, you’ll give yourself a much greater chance of finishing the show without dropping any balls, by doing some sound planning first.

If things are tight, take a long, hard look at your lifestyle. It’s time to do a budget for this scenario—after all, no-one ever planned their finances around a world-wide pandemic. It’s worth taking a step back and assessing where you are financially as we recover from COVID.

When a financial planner asks you what your financial goals are, you know the answers; get rid of debt, pay off the mortgage, save for retirement. But these aren’t your actual goals. Everyone is different. We each have a different ‘raison d’être’, or thing that gets us out of bed each morning.

Have you ever wanted something so badly that you stubbornly ignored the warning signs and good advice that maybe, just maybe, it was not really a good idea? It might have been that extra helping of dessert that left you predictably suffering from indigestion for hours afterwards. 

Buying a home in New Zealand? Has there even been a hotter topic than this in the last year or two?  So many questions, and so many considerations… from what is needed in order to be able to buy a home (and how you might be able to put a deposit together faster) through to owning it as fast as possible… and then maybe using the equity (or money invested) in your own home to build further wealth and security. 

We’ve included practical tips on how to make sure you get the best deal you can from lenders, and how to position yourself as a really attractive borrower for them. This is a subject you just cannot learn enough about, but this is a great starter for anyone interested in buying, owning or investing in residential real estate in NZ. With our compliments.

Disclaimer: Sam Kodi® does not accept any liability for the accuracy or content of any third-party website that you may access via a hyperlink from this site. Such links and references to other websites, organisations or people are provided for your convenience only and it is your responsibility to assess whether the third party provider is suitable for your needs. Sam Kodi does not accept any responsibility or liability whatsoever whether in contract, tort, equity or otherwise for any action taken as a result of engaging any external third party.