How much can I borrow?

If you're a licensed builder, you can generally borrow up to 80% of the construction cost for a full doc loan. If you're not a builder, you can generally borrow 50-70% of the construction cost, so you might need sufficient savings or a gift from a family member.

Why is it so difficult to qualify for a loan?

Some lenders are concerned about lending to owner builders because of the likelihood that you may go over budget or not complete the build. However, if you're a licensed and experienced builder, you may be seen as a less risky borrower.

How does an owner builder loan work?

If you're approved for an owner builder loan, the lender will release the funds to you as progress payments rather than in a lump sum as it would with a standard mortgage. As you complete each stage of construction, a valuer will assess the work and then authorise the lender to provide the next progress payment.

What documents will I need to supply?

For an owner builder loan, you'll need to provide more documentation compared to a traditional mortgage, such as: A copy of your owner builder permit Your project plan A construction cost estimate Your budget A copy of your builder's insurance