Browse Forums General Discussion Re: Owner Builder Bank Loan 2Sep 05, 2014 9:06 pm Some do, but not all. You'd need at least 40% deposit of the total cost, plus fees resulting in around a 60% Lvr (at the mimimum) for a bank to lend. Lower Lvr than that, even better. This Lvr is dependant on the lender, but I have seen 60% Lvr loans mentioned for owner builders in lending criteria. Can't remember which institution this was through though... They want alot of security in there, but some can do it - but not like the 95-97% Lvr loans you see available for people undertaking builds via a project builder. And of course your plans and financials etc need to be all ok as well. Re: Owner Builder Bank Loan 4Sep 12, 2014 12:23 pm Loan to Value ratio. Basically the percentage of cash deposit or equity in an existing property against the amount you wish to borrow. So if your project was $200,000, but only had $20,000 tococontribute your Lvr would be 90 as you only have a 10% to contribute. Just as an example. It'll depend on how much equity you have vs how much your project is estimated to cost and what the banks appetite for risk is, again dependent on the house, where it is etc. How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11916 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19097 |