Owner Builder Loans Australia
Your home may be one of the most important purchases you will ever make.
It is a big decision and one that may have a long-term impact on your financial strategy.
The challenge for an owner builder is to demonstrate to the lender the “intrinsic” value you bring to your project. Intellichoice has developed a unique approach to solving this dilemma. We work collaboratively with you to demonstrate the optimal end market value of your property, which is the key to maximizing your borrowing for your construction project. Through this approach, Intellichoice has a track record of obtaining lending at 80% of land value and 100% of construction costs, based on the end market value.
If you have already commenced your “finance” journey you will have identified there are very few financiers in Australia who provide owner builder loans. Owner-builder lending makes up less than one percent of all loans. If you approach one of these lenders it can be difficult to find an “expert” within the institution who can guide you through the financial aspects of your owner builder construction project.
This gap in the mortgage market is a legacy of lender caution created by owner builder projects not being completed within budget and within reasonable timeframes. Hence a well planned and executed owner build has a huge potential to create wealth.
Over the many years that Intellichoice has been delivering owner builder home loans to its clients, we have identified a myriad of reasons you would elect to owner build encompassing:
- Saving significant amounts of money
- Having control over the quality of the build
- Getting a larger home for the price of a smaller one
- Making use of your project management skills
- Making use of your trade
- Getting to select the trades’ people who work on your home
- Being able to draw on the skills of your friends and family
- The satisfaction of completing your project
Whatever your motivation, at Intellichoice we appreciate an owner builder will end up with a home for a significantly reduced price and this dovetails into a lower mortgage with reduced monthly repayments and increased equity in your home.
As an owner builder, you may well be on an extreme learning curve around the construction and management aspects of your project. Having to concurrently invest enormous amounts of time in researching and understanding owner builder finance can be a distraction diverting your attention away from the “passion” of your project
At Intellichoice we have invested heavily in understanding the finance space for owner builders and our experience is much larger than words on a page. We see our role as being more than sourcing an owner-builder loan for you; it is ensuring you understand all things related to your loan. At Intellichoice we have the answers to the
Tips When Applying for Owner Builder Loans
Speak to us early, when you decide to owner build.
Compare quotes from different builders; take notice of inclusions.
Make sure the builder has a valid license.
If you’re not sure which building company to trust, always check with the Master Builders Association and the or Housing Industry Association.
Make sure your builder has all the necessary insurance policies.
Look at previous homes your builder has completed.
Ask your builder how long the construction process will extend for. Remember, you’re paying interest on the progress payments for your mortgage throughout this time, so you need to know how long it will take.
Before your bank finalises the last progress payment make sure you ensure the property.
Bad Credit Tips
Ensure you have contacted us to arrange for a credit check.
Moving house? Make sure your address is changed for bills.
Set up payment reminders.
Choose good passwords and pins for all your banking.
Be mindful of your budget when shopping online.
Collect and scan all of your bills, statements, and docs for your advisors to see.