New builds are one of the easier ways into the market with a smaller deposit. They're exempt from the Reserve Bank's deposit limits, and generally from the debt-to-income limits too, so many lenders lend up to 90% for a new home you'll live in, and around 80% for a new build rental.
There are two common ways to buy: a house-and-land package or turnkey home, where you pay a deposit and the rest on completion, or a build contract on your own land, funded by a construction loan paid out in stages as the build progresses.
Lenders look closely at the builder and the contract. A fixed-price contract, a builder's guarantee and a realistic timeframe all help. If you're buying off the plans, check how long until completion, because your finances may need to be reassessed before settlement.
If it's an investment, talk to your accountant about tax, and to us about how the rent is counted when you borrow.