Make your money work harder with term investments secured over property

Earn regular returns of 6.25%p.a. by investing in local residential home builds.

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House under construction, builder on scaffolding

Earning great returns has never been easier

Our Construction Loans investment class provides the opportunity to invest in homes under construction. These loans are all secured by first registered mortgages primarily over residential property with a maximum of 80% LVR.

  • Earn 6.25%p.a. floating interest returns
  • Regular monthly or fortnightly interest-only repayments
  • Secondary market gives the opportunity to get your money out early
  • Our Reserve Fund helps protect against any missed payments

Interested in reading more about the kind of lending we are doing in this investment class? Read a case study.

Current market interest rate for Construction Loans

2 year net rate
Interest rates subject to change. T&Cs apply. For more information on how our rates work, have a read of our Investor Booklet.

How much could you be earning?

Work out how much interest you could be getting from your term investments in Construction Loans.

Your monthly interest payments would be*

$ 0
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*This calculator is intended as a guide for illustrative purposes only and is not intended to provide financial advice. It assumes that the amount entered is invested for the entire period selected and returns are based on the investment rates currently available on our P2P platform. The calculation results do not take into account taxes that may be applicable to you (including withholding tax). Please note that interest rates offered on our platform are subject to change and our minimum investment amount is currently $500. To talk to one of our team at Squirrel, please call 0800 21 22 30 or you can find more information about P2P investing here. We recommend seeking financial advice about your situation and goals before investing into any financial product.

Why choose to invest in Construction Loans?

Great returns

Letting your money work hard for you has never been easier. Receive regular repayments, at the interest rate shown above.

Our Reserve Fund lowers risk for investors

Our Reserve Fund helps protect against missed borrower repayments and defaults, provided there are sufficient funds available. Find out how it works here.

The power to get your money out early

The Secondary Market provides Investors the opportunity to sell an investment and get their money out early. Find out more here.

From Kiwis to other Kiwis

Investing in our peer-to-peer Construction Loans means your money is staying on NZ shores and you're helping out other Kiwis. Win win.

We do our due diligence

Our credit policy is tight with no high LVR lending, no poor servicing capacity, and definitely no cowboy property developers.

Manage your investment anywhere, any time

We have a fast, easy, online registration process and a mobile app to manage your ongoing investments.

Our handy PDF investing booklet has all the information you need in one place.

Get the guide sent to your inbox

Investor booklet

Funds currently available to the construction loans reserve fund1, 2


Funds currently available to the Reserve Fund for Construction Loans

1Our number one priority is looking after your invested money. One of the main ways we do this is through our Reserve Fund. Find out about how it works here
2The Reserve Fund for Construction Loans includes cash on hand and an overdraft facility of $100,000 provided by Squirrel Money Limited supported by a bank guarantee

Got questions? Ask away

We'd love to have a yarn and answer any questions you have about investing. Book yourself in for a chat when it suits you.

The risk and return

It's important to remember that no investment comes without some risk. The interest you earn is also indicative of the potential risk for the type of investment you choose.

For this type of loan we only lend to credit worthy clients with the loan secured by a first registered mortgage, primarily over residential property. We also ensure no lending is done above 80% LVR, the property is generally in metro locations, and the owner has a clear exit plan. This image shows each of our investment types relative to each other. Jump over here if you want to find out more about the potential risks with investing.

Man in overalls holding building plans jumping in front of a house

Investing in other like-minded Kiwis

People who take on Construction Loans are business-minded, savvy people who are building their own wealth through property.

Investments in this type of loan provide funding for property investors, small-scale developers or builders looking for lending up to $2 million. This is used to fund land purchase and subsequent build of a residential home. All Construction Loans are secured by first registered mortgages primarily over residential property in metro locations.

We've written case studies about our Construction Loans clients on our blog. Click here to read a case study.

Manage your portfolio on the go

It's easy to manage everything on our mobile app. Make a new investment order any time anywhere, use the secondary market and stay up to date with push notifications. You can download the Squirrel app from The App Store (on iPhones and iPads) or Google Play (on Android phones and tablets). 

The nitty gritty on our peer-to-peer Construction Loans

This type of lending is for property owners who are using the funds mainly for construction. The most common purpose is small developments and investment properties. 

The loans are short-term, typically about 12 months. They are primarily secured against residential property and borrowers will have a clear exit strategy. They are generally within metro locations (urban areas with a population over 150,000).

Loan features and terms:

  • Maximum loan size is $2m in total per borrower
  • Maximum term is 2 years
  • Maximum LVR (loan-to-value ratio) is 70% of registered valuation, or up to 80% of sale price if the property has an unconditional buyer on completion of the build.
  • Interest-only monthly repayments
Hand holding hammer


We've answered a few common questions below. If you're after more information, we recommend downloading our Investor Booklet Investor Booklet  or giving our friendly team a call on 0800 21 22 30.

Who can invest with Squirrel P2P?

We only allow NZ tax residents over 18 years of age to invest through our platform.

How much interest can I expect to receive on a Construction Loan investment?

The Prevailing Interest Rate for Construction Loan investments is shown above and is variable (floating). The interest rate you are presented with when creating your investment order on the Platform is the gross interest rate you will receive on your investment after any fees are deducted but before Resident Withholding Tax (RWT) is deducted.

What is the Prevailing Interest Rate?

The Prevailing Interest Rate is the current Investor interest rate applicable to an Investment Class and Investment Term.  It is set by us from time to time after consideration of the current market interest rates and Platform fees, levies and margins. The Prevailing Interest Rate will be displayed when an Investor places an Investment Order. Investors with open Investment Orders or live investments will receive at least five Business Days’ notice before a change to the Prevailing Interest Rate is applied.

What is the minimum investment?

The minimum amount you can specify when creating an Investment Order is $500. The maximum you can invest through our platform is $2 million. So, you’re free to invest anywhere within that range.

How safe is my money?

Investor funds are held in an Independent Trust and do not form part of Squirrel’s business or assets. We rigorously check our Borrowers to ensure as best we can that they’re creditworthy. We have Reserve Funds to help cover expected credit losses and insurance to protect against acts of cyber-crime and fraud. In a nutshell, although we work hard to look after your money, we cannot guarantee your investment will be entirely protected in event of one or more unforeseen events.

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