Browse Forums Home Finance Re: Owner Buider home loans 2Jan 02, 2009 7:50 pm From previous experience with Westpac they only lend a maximum of 60% for owner builders - no mortgage insurance applicable in any instances.
There are also very stringent rules regarding the mortgage. Very basically and trying to recall - home has to be fully completed within 12mths; at every progress payment you have to have a surveyor / inspector / licenced builder to sign off on your work - which you also have to pay for prior to the Bank valuer coming out to inspect. There are many more conditions - I once typed it all out for a customer and it came to close to 2 pages. I would be ringing and talking to a few Bank's home lending phone lines - they are only to happy to answer any questions. At least you can then narrow down the chosen lender and have an idea of what they would expect from you before applying. Some things are worth waiting for. Re: Owner Buider home loans 3Jan 02, 2009 9:57 pm If you have equity in property that would be the easiest for Owner builder loans and you can skip all the cow manure in the previous post. Otherwise it is a lot harder and more paper work.
If for example you have a block of land paid off and it is worth 300K. the commenwealth bank have a line of credit known as viridian and they will give you 240K (80%) just like that. You could go to the casino if you wanted with the money they wont care. This allows you to manage the money like it is your own. Re: Owner Buider home loans 4Jan 08, 2009 9:28 am When I was researching owner-builder loans last year the NAB was the clear leader lending up to 80% of the amount. The next closest was 65% from memory, but I can't remember who it was.
Some advice I received from a mortgage broker was that if I knew a builder personally and they were willing, I could get them to provide me a fixed-price quote as if they were going to do the full build. This is the tact that my wife and I are currently investigating as owner-building loans looked incredibly difficult. sydney home loan advice, construction loans in sydney 5Jan 12, 2009 4:01 pm borg If you have equity in property that would be the easiest for Owner builder loans and you can skip all the cow manure in the previous post. Otherwise it is a lot harder and more paper work. If for example you have a block of land paid off and it is worth 300K. the commenwealth bank have a line of credit known as viridian and they will give you 240K (80%) just like that. You could go to the casino if you wanted with the money they wont care. This allows you to manage the money like it is your own. I don't think that would work borg. Lenders do want to know what you are going to do with the money you are borrowing from them. No lender is going to lend for an unspecified purpose (or cash out as it is known). Also as a mortgagor you have obligations to inform your lender of material changes to the subject security. Building a house on the land would be considered material. Mortgage terms document covers these issues. Re: Owner Buider home loans 7Jan 13, 2009 4:27 pm borg I was able to do that. What more as the value of the land went up (they sold next door for more) I asked for more money. Within a few months i had a line of credit for very close to what I paid for the bock. did you mean you built on your land without telling the lender? Re: Owner Buider home loans 9Jan 14, 2009 8:02 am The issue I think from all those years ago was that any alterations to the property that the Bank holds as security is meant to be approved by the Bank.
In your case you had the equity to build the home and therefore the Bank would more then likely be covered however most people don't have as much equity in the land to fund the building solely by the land security. Some things are worth waiting for. home loans in sydney, sydney home loan advice 10Jan 14, 2009 11:27 am borg ahh yeah. are you saying they should know?? yes. it looks like you got away with the breach of contract. would not recommend it to anyone. home loans in sydney, sydney home loan advice 12Jan 14, 2009 11:37 am thlo Also as a mortgagor you have obligations to inform your lender of material changes to the subject security. Building a house on the land would be considered material. Mortgage terms document covers these issues. it's more an issue of changing the security on the mortgage, not what you do with the loan proceeds. If the bank holds a mortgage over your land, of course they want to know before you do anything to the land and this is usually in the loan agreement that you sign. Re: Owner Buider home loans 14Jan 14, 2009 12:06 pm Surely if someone puts their block of land up as security which they own out-right, the lender would lend them up to the value of the land. Even if there were issues the bank could recover it by selling the land which would not be devalued by whatever construction has gone on. Re: Owner Buider home loans 15Jan 15, 2009 9:21 am We borrowed against the equity in our land to build our house and when I filled in the application, one question was
"what is the purpose of this loan" my answer was to construct a house. Borg`s situation is likely to be the same? Jo Re: Owner Buider home loans 16Jan 15, 2009 11:47 am but was it a line a credit??
I actually asked the lady if i want to i can go to the casio. She said yep. I didnt actually fill out any paper work. And they havent even come to see if i am infact building a house. Mind you all the other banks where not as leaniant as this. Most told me to jump. Re: Owner Buider home loans 17Jan 15, 2009 2:21 pm yes our loan is a line of credit against the land.(owned 100%)
It is not a construction loan. we used it to build the house as owner/builders. We drew down the funds as needed during the building stages. Jo home loan advice, sydney home loan centre 18Jan 15, 2009 2:24 pm zonk yes our loan is a line of credit against the land.(owned 100%) It is not a construction loan. we used it to build the house as owner/builders. We drew down the funds as needed during the building stages. Jo which home loan lender did you go with? Hi VK, I am now retired however I have stood beside over 300 owner builders in the past 18 years that have successfully built their own homes. First of all a building… 10 22561 Hi all. Anyone know when the $11,000 limit was set in legislation for renovations in QLD? Ive been renovating for 5 years now and this was the limit back then. As we know,… 0 4178 |