They are essentially a far more costs effective way of investing in property in New Zealand as you can use it as a substitute for a cash deposit against your existing equity. It's essentially and insured guarantee to the vendor that you will pay the deposit at settlement. So you pay the full purchase price at settlement. It's far cheaper than borrowing from the bank.

The other thing about Home Bonds that makes them attractive is that they are only available for pre-approved developments. So if a Home Bond is available for a property or piece of land then you know it has passed a rigorous approval process to ensure that it represents good value for money.

A Development HomeBond^TM is the easiest, most convenient and cost effective way to secure your investment

What is a Development Homebond™?

• A substitute for a cash deposit – secured against existing equity

• An insured guarantee to the vendor that you will pay the deposit at settlement

• You pay the full purchase price of the property at settlement

• Allows you to use your existing equity to invest in property

• A Homebond™ costs less than borrowing from the bank

• If you have cash investments, they will, in many cases, earn more in your current investments than the cost of the fee – and you won’t incur the penalties of breaking them

• You won’t tie up your credit facilities for the development period

• Avoid exchange rate variations during the settlement period

What are the Requirements?

• You need to have equity in your home or other properties – at least 3 x the value of the Homebond™ deposit
• You need to have a good credit history

What Information Do I need to Provide?

• Photo Copy of Driving Licence or Passport and 2 recent utility bills

• A legal description of the property (Rates Statement for example)

• Valuation by:

• o A registered valuer (Please send a copy); or

• o Purchase price from a recent sale of that property

• Evidence of All Debt on the Security Property;

• Copy of a Mortgage Statements not more than 45 days old;

• or

• A solicitors written advice to NZHB
  

What Are the Fees?

• The fees are calculated at 0.6% per month or part thereof, plus a NZD 100.00 non-refundable application fee and a restriction fee of approximately .GBP 300.00

• Typically most bonds cost less than 1% of the purchase price.

• Fees are payable upon application and can be paid via credit car

find out how home bonds can help finance your home in new zealand