Owner Builder Loan
If you are not an Owner Builder - Use this link
What is an Owner Builder Construction Loan?
An owner builder Loan is a short-term, interim loan for financing the cost of construction. At the end of the construction term, your loan reverts to a standard loan or fixed loan of your choice. The lender makes payments to the builder at periodic intervals as the work progresses.
If you’re building a new home or planning major renovations to your existing home, an owner builder loan is generally the most appropriate funding option.
Payments (or draw downs) coincide with the initial purchase of the land followed by a number of key construction stages.
Choosing to be an Owner Builder
Doing it yourself can be risky business. Get the facts on being an owner-builder. Did you know that owner-builders take on all the risks and responsibilities of a registered building practitioner? Before you decide to do-it-yourself, get the facts on being an owner-builder.
Fact: Owner-builders must obtain a Certificate of Consent for any domestic building work with a value over $12,000 in order to obtain a building permit.
Which type of mortgage is best?
Selecting the right owner builder loan may depend on a variety of factors.
- Standard Variable Rate
- Fixed Rate
- Offset
- Line Of Credit
- Discounted Rate
- Go Between
- Relocation
- Credit Impaired
- Low Doc
With a low standard variable interest rate, redraws at no additional cost, the choice of monthly or fortnightly repayments, and the freedom to make additional repayments when you want, you can start your project with confidence. You can also elect to fix your rate at at no additional cost.
IMPORTANT INFORMATION
Not all lenders offer ownerbuilder loan facilities.
This means that irrespective of being in a fixed rate loan or a variable rate loan, you can leave that lender by paying their indicated break fee. It is often the case that break fees are less than the benefits received by switching to a better home loan product.