ASB is aiming to help an additional one-thousand new build projects get underway in the next year

The bank's offering a 1.79-percent variable interest rate for customers building a new home from scratch or purchasing a home and land package.

ASB's Craig Sims believes in turn, it will make the housing market more sustainable.

He says it's about making sure there's just one more reason to encourage customers to think about new build options, whether it's owners or investors.

And in addition, Craig Sims says it will goes a step further towards building sustainable homes.