An owner-builder is someone who decides to construct their home themselves instead of contracting a licensed builder. Owner-builders who need a loan will have to take out a construction loan. But many lenders simply will not lend to you if you are not a licensed builder yourself.
If you meet stringent lending criteria such as having enough equity, savings or a guarantor willing to offer security for the loan, you may have a better chance of being approved for a home loan application.

What documents do owner-builders need to provide?

The specific documents vary lender to lender but generally you need to provide:

• Council-approved plans. Your lender will need copies of council-approved building plans.
•  Cost details. This includes a detailed breakdown of construction costs, copies of quotes and estimates plus a payment schedule.
•  Quantity survey reports. You’ll need a copy of your quantity surveyor’s report and a soil test.
•  Insurance. Lenders require owner-builders to hold builders all risk insurance and public liability insurance.
•  Effective budgeting. As part of your loan application, most lenders will need to see a cost estimate for your project. You’ll need to ensure the numbers are as accurate as possible, and you should always include a 10-15% contingency buffer. Unless you’re a licensed builder,
  most banks won’t lend you more than 60% of the build cost, so it’s important that you don’t run out of funds midway through construction.

Owner builder loans is our speciality with over 30 years of experience in the finance industry Being able to source up to 80% Loan To Value (LVR) loans can be the difference between your project being feasible or not. We also have other unique ways to assist in sourcing finance so that our clients can meet their goals.

We can help you achieve your dreams. Building or renovating your home or investment property as an owner builder requires key knowledge to be successful and having assisted several our clients with this, RDL Financial Services can assist you make your dreams a reality.