Owner builder loan

Discussion in 'Loans & Mortgage Brokers' started by LouLou7, 13th Apr, 2018.

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  1. LouLou7

    LouLou7 Well-Known Member

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    Are there any lenders that would lend on an owner build after lock up? If I could fund until lock up and get a loan to complete would be a big help. Are there any lenders that currently do that or even fund owner builds?
     
  2. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Is the land worth enough to secure your loan at <80% LVR? If so there is an easy solution with a big 4
     
  3. LouLou7

    LouLou7 Well-Known Member

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    The land will be bought at 80%
     
  4. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Sounds too risky to me. A few lenders will do owner builder but you need a bit of fat in it and cant do it once the house is mid build.
     
  5. LouLou7

    LouLou7 Well-Known Member

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    Ok thank you
     
  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    What specific items are you referring to? Flooring? Landscaping? Window furnishings? Driveway?

    If so then you will need to ascertain quotes and include them in the original application/valuation. You dont need to go with those specific suppliers but the amounts must be the same. If its more then you will need to cover this from your own funds.

    As a side note (and not related to your original question) couple of lenders including Westpac have a excellent policy whereby they will do owner builds if there is an invoice from the client's Pty Ltd company.
     
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  7. Macca74

    Macca74 Member

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    Hi Shahin if you dont mind me asking what are the other lenders that will finance a registered builder building their own contract?
    I am currently building with westpac and my broker seems to think that we are stuck with them for future projects.
    Cheers
     
  8. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Hi Macca,

    Yes RAMS and Heritage (at max 80% LVR) - there are other lenders like P&N that will do it but at lower LVR's.

    Westpac is the best though as they will go up to normal LMI LVR's.