Owner builder home loans without the headache!
For those of you with construction experience, building your own home as an owner builder can help you save money and retain a level of control that is unavailable with standard construction. Kit homes are readily available in NSW, QLD & VIC and can be financed using an owner builder construction loan.
If you are not an experienced builder or if you are not using the home building system we strongly recommend you reconsider your decision to build your own home.
So which types of home loans are available?:
- Standard variable rate home loans / Professional packages.
- Basic home loans.
- Fixed rate, line of credit and low doc loans are not available unless you are borrowing less than 80% of the land value.
How much can you borrow:
- In most cases you can borrow up to 80% of the value of your land plus the cost of construction.
- If you have a guarantor that can support your application then you may be able to borrow in excess of 80%.
- Payments will be made to you as construction progresses and often a valuer may be required to check your progress.
- In some cases you may be required to have additional cash, equity or family support as a buffer just in case you go over budget.
Which additional documents will you need to provide?
- Copies of your building plans, ideally council approved.
- Your estimate of the costs to build your home.
- An estimate of the progress payments required from the bank.
- A copy of your Owner Builder Permit (if applicable).