Owner builder loans

Hello

We have purchased an old home which we want to knock down and build a new home in its place.

We are in the planning stage now and are nearly finished. We would like to do his as an owner builder and want to obtain an owner builder loan.

We can actually finance most of the construction ourselves, but having some sort loan (even if it's <50% LVR) will provide additional security for us.

Are there any lenders who are doing this type of finance in Victoria anymore?

Thanks

 

is there a loan on it now?

 

Yes just a standard home loan

 

On top of my head, Westpac group allows it at 60% LVR.

Assuming you have experience in a trade etc.

 

Thanks - I will call them but we do not have a trade qualification

 

what LVR is that?

I was thinking you might be able to borrow against the value of the land, but it might not be possible if you already have a loan on it.

 

You've got other options besides Westpac, lenders that don't require trade qualifications.

Is there a reason you want to do as owner build? I'm assuming cost saving but could be something else?

I suggest you engage a good broker to work with you on this.

 

Thanks for the responses. Unfortunately many brokers put this in the too hard basket so I’m not having much luck. Can anyone suggest some alternative lenders so I can call them direct?

We have done owner builds before, it’s always more cost effective for us to do it ourselves, especially as most of my family are tradespeople.

 

Use a broker and go with La Trobe, they will allow you to cash out equity up to 80%. You will just need to show plans/trade quotes what the cash out will be used for etc.

Having gone down this path myself of OB, save yourself the trouble and just use a builder contract.

 

There are certainly cheaper options than La Trobe
Suggest engaging a decent broker to show you what's available to you.