Have you ever dreamt of building your own house or renovating the existing one? Building a new home can be like a dream come true for many people but it is very costly and you may not be able to cover all the expenses without giving up on most of your savings. No matter at what stage of construction you are, you can get hold of owner builder loan to help cover your expenses easily. For obtaining owner builder finance in Australia, you have to meet certain requirements. These requirements may vary from bank to bank and may get strict if you have some issues in your credit rating and score.
The general terms for owner builder loans include:
You need to provide collateral against the loan you are applying for. This collateral can be in the form of some property or a strong bank statement.
Some banks require you to show a stable income or an employment certificate to ensure that you will be generating enough income to repay the loan amount.
The terms and conditions of the loan need to be discussed beforehand with your agent so that you do not have to return anything in excess of what you have gotten as a long.
You may also be required to bring in guarantee of two or more people to show the bank that you can be trusted with the amount that you are asking for a loan.