Owner Builder Finance

Owner Builder Finance Information

Frequently Asked Questions and Explanations in relation to:

How is Owner Builder Finance different to regular Construction Finance?

The process for Owner Building is different to that a contract builder would use when building a house.

For instance, Contract Builders do not need to pay their accounts immediately so they have flexibility in their payment structure. An Owner Builder does not have that luxury. As an Owner Builder you will often need to pay large deposits on your materials and the balance on delivery.

Owner Builders spend 50% of the cost of their entire project within the first quarter of the building project's time frame. The big construction costs are at the beginning of the project, so you need a tailored Owner Builder Loan to make life easier.

How come most banks fail to understand the needs of Owner Builders when considering Owner Builder Construction Loans?

When most banks and bankers think about Owner Builder Finance they only think of one thing: Risk. The reason for this is that most Owner Builders fail. They do this by either underestimating the true cost of their project or the time it will take them to complete it. To a bank the risk doesn't stack up so rather than consider each individual Owner Builder Loan on its merits, they simply say its too hard, and force you to do it their way.

Some banks kill Owner Builders with paperwork... this is called 'death by bureaucracy'! It is actually a deliberate strategy to avoid Owner Builders by wearing them down under a mountain of compliant paperwork in order for them to approve any type of Owner Builder Finance.

This situation can actually be worse than being told no from the beginning! These banks are afraid to say no in case you complain, so they make it so challenging for you to get an Owner Builder Loan, and hope you will go elsewhere.

The reality is that most banks and lenders truly don't understand the needs of the Owner Builder and don't want to take ownership of the Owner Builder Finance space. They are making so much money from other parts of their business they don't see it for what it is.

Well, that was until now...

Some of us in the Owner Building Industry are now working to educate lenders - the ones that will listen! - about how lucrative the Owner Builder Finance Market can be if it is properly managed.

When do I need to get my Owner Builder Loan approved?

As an Owner Builder it is the first thing you must do. Find a bank willing to consider your Owner Builder Loan and ensure you have your letter of approval for your Owner Builder Construction Loan prior to commencing any part of your project.

At the time you purchase land, if you are serious about Owner Building then you need to be talking to your lender about it right then and there.

How much will a bank lend me if I want an Owner Builder Construction Loan?

This varies from lender to lender, and the banks are restricted because of Lenders Mortgage Insurance.

Owner Builder Finance has secured the best possible Owner Builder Loan outcomes through the lenders we have educated and worked with. The bottom line is that if our lenders won't lend to you, then no one will.

Testimonials from Customers who have used Owner-Builder-Finance Solutions:

"My whole project nearly fell through because my existing bank changed the rules during the approval process. At first they were very keen to help me with my owner builder loan. But once the application went to head office they came back and said they were not keen to finance my owner builder construction loan to 80%. I was gutted as I had already made plans and ordered materials based on a pre-approval from the bank. Thanks to my kit home supplier: UBuild Homes, they put me in touch with one of their professional lenders through their Owner Builder Finance relationship and to my delight the bank that I spoke to were very understanding of my needs as an Owner Builder. I got the right owner builder finance, tailored to my project and now I am working on my construction. It was a great service and I could have been in big trouble without it."

Steve in Brisbane

"When I went to my bank and asked them for finance for an owner builder project they just flat out said no. They didn't even want to hear out my proposition. I had no idea that some banks were so anti owner builder finance. I had almost decided to give up the thought of owner building until a mate of mine showed me a web site and I dropped in my details. Next thing I know someone from the National Australia Bank rings me up and was very enthusiastic about working out an owner builder loan to suit my needs. I got the loan and did the project. Proved the first guy wrong that's for sure."

Michael in Newcastle

"We got such a hard time from our bank about Owner Building. They were very negative and tried to talk us out of it on every occasion. After talking to Barry at UBuild we were introduced to a different lender and they were fantastic. The interesting thing is that we ended up not owner building but we still got our loan through the new lender and dumped our old bank because they showed much better interest and desire to help us out with a potential owner builder loan. We may still owner build in the future so we at least know that our current bank will be happy to talk to us about an owner builder loan when the time is right. Thanks Barry."

Melinda in Coffs Harbour

For more information on the power of a tailored Owner Builder Finance Solution that provides a construction loan best suited to your needs then why not check out this article:


To get the right Owner Builder Finance solution then go to the following web site and fill in the easy form and a professional, experienced banker will contact you to discuss your owner builder finance needs.