Financing of new construction

In this guide, we'll look at financing new builds and how to make sure the whole process - from idea to turnkey house - runs smoothly. New-build allows you to create your dream home from scratch, but it also has greater financing requirements than a conventional house purchase.

Read on to find out how to take out a loan for your new-build.

Calculate how much you can borrow

Before you can start realising the dream of building your new home, it's important to know how much you can borrow, and therefore how much you can build a house for. The best place to start is to contact your bank. The bank can calculate how much you can borrow and give you an idea of what is realistic within your budget.

The calculation is made on the basis of your household income, your savings and your debts. Once the bank has calculated how much you can borrow, you can adjust your expectations accordingly and start looking for a building plot.

Get an overview of what it costs to build a new house

It's a good idea to get an idea of what it costs to build a new house. Even after you have a good estimate of the cost, you should leave a 10-15% buffer when building a new house. This is because there are typically more unforeseen costs when you build yourself than if you buy a turnkey house.

If you find a site for your new build, there will be costs for soil testing to ensure that the site has the right bearing capacity and that the soil is not contaminated. Then the site has to be developed, which means laying sewers, connecting water and electricity and preparing it for new construction. The biggest item to be financed is the materials to build the house itself and pay those who carry out the work - everything from pouring the foundations to laying tiles for the carport.

The budget must also allow for the necessary insurance, building permit and planning permission costs, as well as interest and fees incurred in financing the new build.

Team up with experts

Building a house from scratch isn't easy, so it's important to have a team around you who've done it before. Your bank has housing advisors who can help you find the right financing for your house purchase.

You also need a lawyer who can review purchase agreements for the land and house, a construction expert who will follow the building process from start to finish, and an insurance agent who can make sure everything is in place in case of an accident.

You don't have to find the land and build the house yourself if you dream of a new build. In a so-called project purchase, the developer has typically prepared a plot for new construction but hasn't built anything yet, so you can help decide how the house will be finished. Here you get the benefits of a new build, and there will also typically be fewer unforeseen costs than if you have to 'do it all yourself'.

Get full financing for new construction with crowdlending

At Fundbricks, we offer attractive financing options for new construction through crowdlending services. This includes both senior and junior financing - all with no personal liability required.

Access capital through our broad network of crowdlending investors. The process takes a short time and the construction is mortgaged, so you don't have to be personally liable.

Calculate your case and get funding quotes here.

See also the many completed construction projects that have been made possible through Fundbrickscrowdlending.

Advantages of new construction

It's no secret that building a new house is more demanding than buying a turnkey one. However, there are a number of advantages to building from scratch. Here we highlight three advantages.

Everything is new

When you move into a newly built house, everything is brand new. There are no creaky floorboards, no smell from the previous occupant, and no old neighbour disputes. So you get to put your very own stamp on your new dream home.


As the house is brand new, so are all the materials. Therefore, the house will require minimal maintenance for the first many years. You can therefore sit back and enjoy your new home.

Energy efficient

As we've discussed in this guide, there's a lot to finance when building new homes. However, it can often pay off in the long run, as newly built houses are often significantly more energy efficient than older ones. This can be felt on both heating and electricity bills, especially at times when energy prices are rising.

Full funding for solid Danish real estate projects

Together with our partners, we can in most cases provide full financing for solid Danish real estate projects. This includes both senior and junior financing - and all without any requirement for personal liability.

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