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 to the application part.
We can help you do this with our free Budget Planner. To get a copy, refer to the link under ‘Additional Information' below.
A few other points you need to know:
- Once the loan has been approved and the project starts, the Owner Builder uses their own funds for the build. It's when the Owner Builder's funds have been used that 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.
You want to get through your Owner Builder project without financial stress. It's simply not worth it. The more you plan, the more you'll put yourself in a great position to get to the end.
This is just a snippet of the finance side of things, we encourage you to click on both the links provided below particularly the Q&A!
ADDITIONAL INFORMATION:
This Q&A is a must read – All you need to know about Owner Builder finance
Get our FREE Budget Planner – CLICK HERE
And if you're 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.