Owner-Builder Loans

It is very common for inexperienced owner-builders (who are distinctly different from Registered Builders) to under-estimate their building costs and find themselves short of funds to complete their dream home.  Often borrowing against the “land only” value of a property can end up in tears and frustration.

Many tradespeople in the building industry also like to build their own home as an Owner-Builder and use their friends and contacts for many of the associated trades.

We have extensive experience in the Owner-Builder area in Victoria and can often assist where others have said “no”, including take-over of debt from existing lenders on partially completed construction.  The loan can be based on the “as if completed and Occupancy Certificate issued” valuation from a professional, independent valuer.

Loan-to-value ratios

The loan-to-value ratios are always lower from lenders to true Owner-Builders (down to 60-65% of the end completed value) and most banks will refuse to even consider taking on a security property that is only partially completed (even when past lock-up stage). We have helped clients in this situation where a refinance is required to complete the house construction and additional monies approved.

These days, it is the full construction costing information required by the sworn valuers (used by all banks) that can be very problematic and time consuming for all Owner-Builders. Call and talk or email us about your individual situation to find out what may be done to help.

If you run out of funds to complete a build

If you have run out of funds to complete your build, call us to see how we can assist. Don’t fall into the trap of relying on expensive credit cards or seeking money from friends and family without seeking professional advice first. It is much harder for us to “bail out” owner-builders who have exhausted every option for finance before coming to us for help. Obtaining owner-builder construction warranty insurance can also be problematic once construction has been started.

Ready to get started? Get in touch with Philip Pay on 0439 400 497 or email to find out how Finance Consulting Group can support your loan application.