What kind of loan do you need to build a house?

You need a building loan to build a house on vacant land, or to finance renovations on an existing property.

Unlike a home loan, the bank pays out a building loan in stages, as each stage of the construction process is completed.

As with a home loan, you will need a good credit record when applying for a building loan. You will also need to ensure that the contractor is registered with the NHBRC (National Home Builders Registration Council).