CAN YOU REALLY BUILD WITH JUST 10%?

Buying your first home can feel like a stretch – especially when you’re juggling rent, rising prices, and a million opinions on what you should be doing.

And while we can’t do much about Uncle Kev’s unsolicited “back in my day…” advice, we can let you in on something that might actually help:

You might be able to build your first home with just a 10% deposit.

Yep. Not 20%. Not some mystery figure pulled from a budgeting spreadsheet you haven’t updated since 2022.

Just 10% down, and you’re in the game.

Most People Don’t Know This is Even an Option

There’s a general consensus among young Kiwis that property is unrealistic expectations, so they keep saving and watching from the sidelines.

But what if building wasn’t just possible… What if it was actually easier?

• No auctions

• No blown-out reno budgets

• Fixed price contracts that make lending simpler

• And yes, affordable House + Land packages that work with just 10% down

You don’t need to have it all sorted. But once you know this path exists, it’s worth a closer look.

How the Money Works (Minus the Jargon)

When you build, there are two common ways the payment side is structured. Here’s the plain English version:

Progress payments

Your home is built in stages, and your bank releases funds along the way. Think slab, framing, roofing, etc. You only pay for what’s been done — and because you're paying as the work progresses, you’re not covering the interest costs a builder would incur if they financed the build themselves and settled at the end. That makes this the more affordable option overall.

Turnkey

This is the most common for first-home buyers. You pay your deposit now, and nothing else until the keys are handed over. Turnkey is popular with investors or off-the-plan buyers who want to keep things simple.

Either way, you don’t need heaps upfront, and you’re not covering rent and a full mortgage all at once. There are flexible options depending on how your finances are set up.

What Do the Banks Want to See?

It’s probably less scary than you think. Most lenders just want:

• A deposit (around 10%)

• A fixed-price build contract (we’ll help you get this sorted, it’s kinda our thing)

• Proof of income and expenses

• Plans and consents (tick, tick)

Plus, many lenders prefer new builds because they’re more energy-efficient, code-compliant, and less likely to come with costly surprises.

Building Might be the Move

You might’ve ruled out buying because it felt out of reach. 

You might not have even considered building.

But now you know: It’s possible. It’s achievable. And it might just be the smarter move.

And no offence to Uncle Kev – but we think that’s advice worth listening to.

FAQs

Can I really build with just a 10% deposit?

Yes, in many cases, that’s all you need to get started. It depends on your lender, income, and build contract, but 10% is a realistic starting point for heaps of first-home buyers.

Is building more expensive than buying an existing home?

Not always. With a fixed-price build, you avoid auctions, reno costs and surprise repairs. Plus, new homes are energy-efficient and lower maintenance, which can save you money long-term.

What’s the difference between progress payments and turnkey?

Progress payments = your loan is paid out in stages as your home is built.

Turnkey = you pay a deposit now, then nothing more until the house is finished. Both have their place – it depends on how your finances are set up.

What help can Classic Builders give me?

We’ll walk you through the process, connect you with trusted professionals if you need lending advice, and handle the build from start to finish.