Owner Builder Loan
The first thing you need to know about getting finance for your owner build project is that banks want detail (and LOTS of it).
The next thing you need to know is an Owner Builder can only borrow up to 60% of the build cost versus 90% to 95% if going through a registered builder.
But don't let that put you off.
Get two steps ahead of the bank by doing loads of planning, (and more planning) before you even get the application part. Look at the ‘Additional Information' below for relevant links.
Once the loan has been approved and the project starts, the Owner Builder uses their own funds for the build. Once the Owner Builder's funds have been used, the bank will commence progress payments at the end of each stage.
The biggest factor Owner Builders need to take into consideration is time. The longer the build takes the more it costs. Clients need a strong budget and to be able to work to a strict timeframe.
This is super important if you want to enjoy the benefits of why you chose to be an Owner Builder without the financial stress.
This Q&A is a must read – All You Need to Know About Finance
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And if your looking for a Mortgage Broker familiar with Owner Builder finance, we highly recommend Paul Blake at Citiwide Home Loans. We like Paul because he has over 20 years lending experience and has helped many owner builder clients with their finance to build their dream. It also helps that he’s honest, down-to- earth and works hard for his clients.
Feel free to contact Paul on 1300 345 747.