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.