Owner Builder - New Home

Hi All,

We are currently finishing up our renovator then it will go on the market in about 5 months. So I am just trying to start our next journey...

Next home we are looking at building new, I have spoken to our bank which they have told me. I need a total of 60% to borrow for the build and land - which is 20% for land and 40% for the new home build. This comes down to my husband is a builder and will be building the house, it will be going through his company.

Saying this; the land will be $350k, house to build with be around $300k. Our plan is to stay in this house for about 2 years than move on.

Is there builders on there that have done this? Interested to see what other banks have to offer.

Thank you!

 

Perhaps you should speak with a broker local you to see what options they might have?

 

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Thanks, I haven't heard of this. I will speak to our accountant about it..

 

Would suggest you speak to your banker/broker about it.

Banks really don't like owner builder, best to set up a plan and know what can be done ASAP

 

Yea, I have certainly worked out banks do not like owner builders! It used be be 40% but just recently gone up again.

 

If your husbands a registered builder, then get his company to produce a fixed price building contract and supply that.
Then it's not technically owner builder anymore.
Happy days.

 

Lol. Use a broker from here. Use the same bank if you want to, but if it didn't occur to your bank manager to give you that advice, why go back to him?

 

Maybe that it's out of the banks policy and the bank manager isn't willing to turn a blind eye to it.

 

You need a good broker who will kick ass with a range of lenders and get you the best result for your situation. Also certain brokers have all kinds of relationships with banks. I know this for a fact. My broker has confided a lot to me about how things can work in that environment.

Get a top gun broker to be sure your not being blind sighted.

 

Not many brokers or managers would have that experience. For most it would involve a call to credit to have it confirmed.

Its covered by the same insurance, warranty etc, it's arms length, a contract between build company and individual. so logically it should fly. But that's just logic, not policy.

I wouldn't have known this except I did one some years ago, and after ringing around found a lender to accept it.

I didn't try cba though.

 

If they're the director of the company it's not at arms length.

Can't be done with CBA unless you're a very very large company. Small registered builder wouldn't fly, more in the case of a hands off director who's building 100-200 houses a year.

Used to like it when logic overruled policy, bit harder to get that to fly these days