New partnership frees up builder capital tied up in pre-sold projects
Squirrel and Master Builders have launched a funding partnership designed to solve a long-standing headache for New Zealand builders: having capital locked up in homes that are already sold.
The product, 100% Turnkey Funding, was unveiled at Constructive 2026 and allows eligible builders to fund the full cost of pre-sold turnkey projects without contributing their own money, freeing them to move on to the next site sooner.
Under the traditional turnkey model, a builder can have a committed buyer and a signed contract but still needs to fund land and construction themselves through to settlement — tying up capital that could otherwise go toward a new project.
Squirrel's own data shows access to capital has consistently ranked among the building sector's top pressures, and Master Builders' State of the Sector research found it was identified by 78% of respondents in 2026, marking its fourth consecutive year in the top three concerns.
That pressure is intensifying as building activity picks up: new home consents topped 40,000 in the year to June 2026, up 19% and the first time above that threshold since 2023, according to Stats NZ — meaning more builders are likely to be juggling multiple pre-sold projects at once.
That growth in supply is landing in a more difficult pricing environment, however: much of the new supply now working through the pipeline will reach settlement through late 2026 and into 2027, into a market where house values have been falling for the longest stretch in decades — a dynamic that adds context for brokers assessing pre-sold turnkey lending in the current market.
How the funding model works
Under the new arrangement, Squirrel can fund 100% of the land cost and 100% of construction costs, less a 20% implied builder margin, meaning the entire project cost can potentially be funded without the builder tying up their own capital.
For buyers, nothing changes: they sign an unconditional Sale and Purchase Agreement, pay a deposit, and settle once the home is completed, with the Master Build Completion Guarantee remaining part of the structure throughout.
Ankit Sharma (pictured left), Master Builders chief executive, said the partnership was a direct response to what building businesses have been telling the association.
"Access to finance remains a real constraint for the sector. A builder can have sound projects and customers ready to go, but if their capital is tied up until those homes settle, they may not have the capacity to act on the next opportunity," Sharma said.
He added the model could have a wider ripple effect: "The potential flow-on is more local work and more quality homes being built."
Backed by Squirrel's lending scale
John Bolton (pictured right), Squirrel founder and group head of property finance, framed the product as a direct answer to builder feedback.
"You can't build the next house when all your money is tied up in the last one. That's the problem we kept hearing from builders," Bolton said.
Squirrel arranges roughly $4 billion in home loans annually and funds more than $1 billion in construction lending each year, having backed more than 1,600 development projects to date.
Eligibility will depend on Squirrel's lending criteria, and the product won't suit every builder or project. 100% Turnkey Funding becomes available to eligible Master Builders from 5 October 2026.
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
