Thinking about becoming an owner builder?
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Thinking about becoming an owner builder?

ByDarin Hindmarsh

Thinking about becoming an owner builder? There is something satisfying about completing your home as an owner builder, kicking back on the DIY balcony, beer in hand and admiring the view. Along the way, you may have also saved yourself some money and picked up some handy skills. But the fact is – being an owner builder is not an easy task. It will cost you energy, frustration and in the worse case, if you don’t get it right – a lot of money. Before you start renovating or building your own house, you need to seriously ask yourself whether you have the skills (and we are not necessarily talking about trade skills) and time available to complete the necessary work and becoming an owner builder. Consider the following before you launch into your DIY project. Are you prepared to be responsible for the owner builder project? An owner builder is someone who manages their own residential building project and looks after the coordinating and contracting roles that are normally undertaken by the builder. If you plan on becoming an owner builder, there are a few responsibilities you need to be prepared to take on board. Depending on which state you reside in, you will also need an owner builder permit before you start building your house. There is usually a fee associated with this and you may also need to complete an owner builder course that will give you the basic skills and awareness in a number of essential areas. You can speak to the local council for more information about the owner builder permit and owner builder courses. Subcontractors If you are building your own house, you cannot avoid using subcontractors. Even if you intend to do most of the work yourself, there are certain jobs, such as plumbing and electrical wiring, which by law, must be completed by a licensed professional. You will need to be aware of all the associated issues with hiring subcontractors. For example, you will need to check out GST and PAYG regulations in relation to payment. You will also need to organise workers compensation, a long service levy, health and safety levy, and even a training levy. As you are in charge of the whole project, you will also need to manage each of the subcontractors working under you. If you have a problem, you must deal with the subcontractors directly. It is also possible to employ a builder will relieve of this responsibility and act on your behalf. Health and safety On a construction site, there is a very real risk of injury, and if you are an owner builder you must familiarise yourself with occupational health and safety regulations. It is your responsibility to enforce these regulations and protect the people working on site as you are the person managing the building project. How much will I save as an owner builder? The main reason people choose to build themselves is to save money. However, the reality is that an owner builder who is not part of the building industry usually pays significantly more for materials than a professional builder. This is because they usually buy materials in bulk and pay much cheaper prices and of course, they don’t need to buy or hire their tools. Owner building made easy Intellichoice makes building your own home a reality, and it is ideal for first home owners, young families, or parents who want to help their children to get started in the property market. It can be a way of getting exactly the home they want at a cheaper price than they could by buying it outright. The beauty of the owner builder system is that it guides the owner builder through the whole process and ensures the smooth running of a home construction or renovation project from start to completion. The owner builder system also offers a range of additional services including: • Introductions and trade discounts at national suppliers • Assistance with the location of trades in your local area • Full quantity take-offs of materials by a Quantity Surveyor on the clients’ plans • Quality inspections of workmanship • Discounted construction and public liability insurance • 7-day access to professional telephone support from a builder • Staged costing summary and cash flow for the owner builder project By using the owner builder system, you can save up to 30% off the cost of even the cheapest fixed-price builder’s quote. And you get exactly the same house! For major renovations, you can save up to 50%. For more information, call Intellichoice on 1300 55 10 now. Our mortgage brokers can also assist with owner builder finance of up to 80% of the total end market value of the completed house, instead of the usual 50% of hard costs that most mortgage lender

Lending for Self Managed Super Funds
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Lending for Self Managed Super Funds

ByDarin Hindmarsh

Lending for Self Managed Super Funds When people start to turn their attention to their retirement planning and how they are going to fund the sort of retirement lifestyle they are hoping to achieve sooner or later they start to focus on their superannuation and very often, they start to look into lending for SMSF (self-managed super fund). An SMSF is a fund that is set up to services a small number of people. There are a number of distinct conditions that need to be met for it to be considered an SMSF. These conditions include a maximum number of people that can be provided for.  The fund also needs to be controlled by trustees or directors who also must be members. The members are in control of how they invest the funds within the SMSF account. One of the keys to consider when deciding whether an SMSF is a right product for you is whether you are able to separate your personal finances from your superannuation finances. If you were to use SMSF assets for items that are deemed personal use, you may be considered to be non-compliant with superannuation laws. SMSF funds need to be kept entirely separate and managed well. It is also important to consider whether or not you have the time to manage your SMSF. It is not a project to be undertaken lightly and it is also important to be sure you have a high enough level of knowledge to manage the project effectively. As a trustee, it is your responsibility to manage and invest your superannuation and that is not an activity that would be suitable for everyone One of the most common reasons for undertaking an SMSF is to save money. Many commercial superannuation funds charge fees that based on the amount of money you have in your fund. That means, the more you have the more you are charged. SMSF fees, however, are most commonly a fixed amount per year, which means there is potentially a cost saving when the fund grows to a significant size. There are times and circumstances however where an SMSF isn’t able to earn enough income to make this a cost-effective option. It is very important to make sure that the benefits will be worthwhile. A good place to start when considering an SMSF is exactly what sort of benefits your existing commercial superannuation fund offer and whether changing might mean you need to pay for extra features. An example of this may be if your existing fund offers life insurance or income protection insurance or trauma insurance. By leaving your existing super fund and creating an SMSF you might have to start paying for that insurance upfront. If, after conducting your research, you decide it is worth doing, there are a number of benefits to having an SMSF. One of these benefits is that it can maximize wealth creation when assets increase. Another reason many people set up their own SMSF is that borrowing terms are flexible. Borrowing periods can be for a short time or a long time Having an SMSF can also allow for additional non-contribution style funds once the members have reached their limit. In addition, future income and capital gains are taxed at a lower rate when they are held in an SMSF. As with all important financial decisions, it is very important to understand all the issues surround the decisions you make but here are a few other ideas you can think about when considering SMSFs. You could consider transferring more of your assets into SMSF to reduce your tax burden. You could also consider using SMSF loans regularly. Always speak with a financial advisor you trust before embarking on the journey of setting up your own SMSF. Advisors who work full time in the industry are often aware of changes that are likely to affect you as well as the tips and tricks that can help make sure setting up an SMSF are worth the time and potential risk.

How SMSF can work in the current climate
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How SMSF can work in the current climate

ByDarin Hindmarsh

Self Managed Superannuation funds are a hot topic of conversation at the moment. Some people are concerned about their super not working for them and are just not sure what to do. Not having control of your finances can be unsettling, especially as super is on the share market. For many clients who come to us, that unsettling situation is disconcerting for them. for the most part, these are people who have worked hard for their money and want it to continue to work for them. Many of our clients stress this issue. Here’s an example of how SMSF can help businesses to regain control. A well-established business had a property ownership entity. That entity had borrowed money to buy a commercial property within which they work their business. That premise was now too small and they needed an expanded premise. They had good equity in their existing premises but they need to move up into a higher gear. The principals of the business have cash sitting in their SMSF. So the super fund was able to buy their new commercial premises. The business itself, entered into a rental contract with their self managed a super fund. The business then sold their existing premise and use the equity from that sale to inject into the expansion of the business.

Can I Buy a Car with Defaults on My Credit File?
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Can I Buy a Car with Defaults on My Credit File?

ByDarin Hindmarsh

I have defaulted on my credit file …….will I be able to purchase a car???? There are financiers who provide bad credit car loans and specialists who can source them on your behalf; however, your eligibility will be determined by the nature and the severity of the credit impairment.   Keep in mind that a car loan is securitized by the vehicle and less risky than an unsecured loan. Car Loans for People with Bad Credit Financiers who provide this type of lending have the following policy regulations: Accurate Documents for Your Bad Credit Car Loan Applications When applying for car loans, ensure the accuracy of your information. Inaccurate information will be identified and detract from the robustness of the application. Keep in mind if you have a blemished credit history, the lender begins with the premise that you may be a greater risk in the future.  Hence to then have inaccurate information in your application, could lead to a declinal in an application which otherwise might have been approved.  The types of information which are typically omitted or captured incorrectly could encompass the following: If you are aware you have credit impairment, ensure you have accessed a copy of your credit file prior to approaching the specialist and that you are aware of the level of your impairment.  If you identify errors to correct them prior to making application as it could result in lower interest rates,  fees, and reduced deposits. Lenders will apply a rate for risk approach in determining the interest rates, the greater the credit impairment, the higher the interest rate.   Interest rates can vary widely – 8% up to 26%. The greater the severity of credit impairment will also have an impact on the amount of deposit you will be required to put in – 20% – 50%. You can see the variation in rates and deposits can vary widely and so you should do your research and gain an understanding of how interest rates and deposits vary based on your level of impairment. In assessing your decision to proceed with a bad credit car loan, know that it is a short-term solution while you work at rebuilding your positive credit file.  We’ve been providing bad credit car loans to clients in Brisbane, QLD, NSW, Melbourne and throughout Australia.

Find an Owner Builder Home Loans
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Find an Owner Builder Home Loans

ByDarin Hindmarsh

Owner Builder Loans Australia Your home may be one of the most important purchases you will ever make. It is a big decision and one that may have a long-term impact on your financial strategy. The challenge for an owner builder is to demonstrate to the lender the “intrinsic” value you bring to your project.  Intellichoice has developed a unique approach to solving this dilemma.  We work collaboratively with you to demonstrate the optimal end market value of your property, which is the key to maximizing your borrowing for your construction project.  Through this approach, Intellichoice has a track record of obtaining lending at 80% of land value and 100% of construction costs, based on the end market value. If you have already commenced your “finance” journey you will have identified there are very few financiers in Australia who provide owner builder loans.  Owner-builder lending makes up less than one percent of all loans.  If you approach one of these lenders it can be difficult to find an “expert” within the institution who can guide you through the financial aspects of your owner builder construction project. This gap in the mortgage market is a legacy of lender caution created by owner builder projects not being completed within budget and within reasonable timeframes.  Hence a well planned and executed owner build has a huge potential to create wealth. Intellichoice Finance Owner Builder Loans Over the many years that Intellichoice has been delivering owner builder home loans to its clients, we have identified a myriad of reasons you would elect to owner build encompassing: Whatever your motivation, at Intellichoice we appreciate an owner builder will end up with a home for a significantly reduced price and this dovetails into a lower mortgage with reduced monthly repayments and increased equity in your home. As an owner builder, you may well be on an extreme learning curve around the construction and management aspects of your project.  Having to concurrently invest enormous amounts of time in researching and understanding owner builder finance can be a distraction diverting your attention away from the “passion” of your project At Intellichoice we have invested heavily in understanding the finance space for owner builders and our experience is much larger than words on a page.  We see our role as being more than sourcing an owner-builder loan for you; it is ensuring you understand all things related to your loan. At Intellichoice we have the answers to the Tips When Applying for Owner Builder Loans Tip #1 Speak to us early, when you decide to owner build. Tip #2 Compare quotes from different builders; take notice of inclusions. Tip #3 Make sure the builder has a valid license. Tip #4 If you’re not sure which building company to trust, always check with the Master Builders Association and the or Housing Industry Association. Tip #5 Make sure your builder has all the necessary insurance policies. Tip #6 Look at previous homes your builder has completed. Tip #7 Ask your builder how long the construction process will extend for. Remember, you’re paying interest on the progress payments for your mortgage throughout this time, so you need to know how long it will take. Tip #8 Before your bank finalizes the last progress payment make sure you ensure the property. Bad Credit Tips Tip #1 Ensure you have contacted us to arrange for a credit check. Tip #2 Moving house?  Make sure your address is changed for bills. Tip #3 Set up payment reminders. Tip #4 Choose good passwords and pins for all your banking. Tip #5 Be mindful of your budget when shopping online. Tip #6 Collect and scan all of your bills, statements, and docs for your advisors to see.

Can I still get a loan with bad credit?
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Can I still get a loan with bad credit?

ByDarin Hindmarsh

I Have A Bad Credit……..Can I Still Get A Loan? Non-conforming lenders, also known as specialised or sub-prime lenders exist to provide bad credit loans to those people who do not fit with the traditional bank lending criteria. Typically their credit file will have a default, judgment, clear out, Part 9 or Part 10 or bankruptcy listing notated on it.  The listing will notate the value of the default, if it is paid or unpaid, if paid – how long ago it was paid, date of listing and when the listing is to be removed. Unfortunately paying the default or judgment after the event will not have it removed.  Once there is a credit impairment listed on your credit file, it remains there (even if it is paid) for five years.  A more serious default or bankruptcy can be listed for up to seven years. Although loan companies will usually focus on all your past activities, they could be more keen on the last one or two years of your credit report. Showing a recent activity of making on-time monthly payments could help minimize payment issues from past bankruptcy listing. Non-conforming Lenders in The Australian Market These days you will find more than 12 primary non-conforming lenders in the Australian market who can offer loan products that don’t suit the lending conditions of major loan providers like traditional banks and credit union. Note that not all non-bank lenders are non-conforming. Also, non-conforming lenders must not be mistaken for non-bank lenders. Non-conforming lenders can accommodate the following loan types: – Debt consolidation, unlimited facilities and including ATO debts – Refinance with cash out for other acceptable purposes – Purchase of an owner-occupier home – Purchase of an investment property – To raise capital for business purposes (including working capital) providing there is a residential security Where there is a non-conforming loan application the lender is assuming the greater risk position.   To offset the risk the rate and fees are set at a higher level than the typical rates and fees of a mainstream lender. Important:  Keep in mind a non-conforming loan is a short term solution and the benefits can outweigh the downside.  Consider a situation where your default will continue to show on your credit file for the next five years.  In a rising home market, where prices are increasing 5% year on year, a $300,000 house will rise in price to $382,500. Set out below is a table indicating the level of impairment and the loan to value ratio that a bad credit home loan will be extended to: Credit Impairment Criteria LVR Unlimited adverse credit impairment (paid or unpaid) 12 months plus prior to loan applicationOne month mortgage arrears within the last six weeks at the time of loan application No limit to the number of debts to be consolidated Purchases –90%Refinances – 85%Equity Releases – 85% Unlimited adverse credit impairment (paid or unpaid) 12 months plus prior to the loan applicationTwo adverse credit (paid or unpaid) 12 months or less prior to loan applicationTwo months current mortgage arrears No Limit to the number of debts to be consolidated Purchases –80%Refinances – 80%Equity Releases – 80%

Car Loans with Bad Credit: Are You Qualified?
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Car Loans with Bad Credit: Are You Qualified?

ByDarin Hindmarsh

Car loans for people with bad credit, also simply known as bad credit car loans are second chance loans available for people with low credit score and those who have black marks on their credit report but can repay a loan. Credit history and reports play a big role in securing financing and mortgages in Australia. Yet, do not have to let a bad credit rating deprive you of securing a loan. Car loans with bad credit are available for people with bad credit. So how do you qualify? Full documentary bad credit car loan applications require the following documents: Self-employed individuals may also apply for a second chance car financing. They need to prepare the following documents together with their application: Low Document Bad Credit Car Loans can also be availed by Self-employed individuals as well as entrepreneurs and small business owners. They will have to submit the following documents along with their bad credit car loan application: Are You Qualified for a Bad Credit Car Loan? Different banks and lenders have different qualifications and requirements when receiving and approving bad credit car financing. Although most requirements are the same documents for application, qualifying for a loan differ from one lender to the other. To increase your chances of getting your bad credit car loan approved, you can follow these tips. 1. Be Honest with Your Application You can never bite more than you can chew. Present authentic documents and be honest with your current financial situation. You might lose the chance of getting a bad credit car loan approved if you fail to submit correct and accurate details about your finances. If you do manage to get approved with false documents, you will be having a hard time catching up with payments if your actual financial situation is different from what you presented to your bank or lender. 2. Review Your Credit History and Financial Documents To be able to reflect on your actual finances and be able to identify where you are at in terms of your finances, it would be advisable to review your credit report and other financial documents – mostly your requirements – when applying for a bad credit car financing. If you are having a hard time translating your financial data into a summary you can understand, you may seek help from your accountant. The good thing with reviewing and revisiting your credit file is that you get to remove items that can affect your application negatively. However, you should be careful with what you remove from your credit report. Accounts that are already closed – say debts or loans that are already paid off – should not be removed from your file if these items were paid on time and diligently. This can be the basis of how reliable you are as a payee, thus a good impression on your end from your bank and lenders. 3. Pay Outstanding Accounts and Debts The key to getting qualified for a loan is creating and maintaining the impression that you can repay a loan despite the black marks on your credit report.  Repaying personal loans, credit card debts and other loans prove that you are taking steps in becoming a better person in terms of your personal finances. You might want to get a debt consolidation to save on interest rates or simply pay off debts you can afford to close. Eliminating debt also gives you access to more cash in the future. The more you have and the less you must worry about paying back your other loans, the less risk a bank or lender will see in you in terms of paying back a second chance loan. You Can Qualify for a Bad Credit Car Loan Loan repayments can be quite heavy on the budget. Minimizing debt makes it easier for you to repay a car financing loan. You can also improve your credit rating the in the process, thus better chances of getting approved despite bad credit histories and poor credit to worry about. There are financing options available for you even with bad credit on your file. Even if your credit rating is not sparkling clean, you can still find a suitable financing option for you. Get the best financial decisions for your personal circumstances with Intellichoice. With more than 15 years in the business, we can find the perfect lender with the best rates and interest rates perfect for your needs and financial situation.

Understanding why Intellichoice Owner Builder Loans differ from Traditional Loans
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Understanding why Intellichoice Owner Builder Loans differ from Traditional Loans

ByDarin Hindmarsh

[featured-video-plus] Owner Builder Loan Difference vs Traditional Home Loans Owner builder loans are very different from the traditional home loans that we have in Australia. Unlike the usual mortgages homeowners avail, owner builder loans are more rigorous and require a different set of requirements, unlike regular home loans. In an Owner Builder setup, the client applying for a loan is a contractor that will owner build their home. It is not enough to have experience in constructing or be an employee in a construction company to be able to get access to funds that will help you build your own home. You will need to be a registered contractor – complete will all the documentation, permits and licenses that prove your authenticity as an able contractor. Banks and lenders are also more critical when receiving and approving owner builder loans applications. Owner builder loans are considered as high-risk loans. There are a lot of processes and people involved in construction. Such processes, when handled inappropriately can potentially halt the construction or in some cases leads to an incomplete construction project. When this happens, this puts the repayment of the approved loan at risk. Understanding why Intellichoice Owner Builder Loans differ from Traditional Loans ” and the body should read: “This video provides insight into how Owner Builder Loans are different from the Standard Residential Construction Loan that most people use for building a home with a registered builder. We cover the loan ‘Draw-Down Stages’ for Owner Builder Loans, what information is required when applying for loans and the significant differences between the lending types. Understanding how Owner Builder Loans are set up and drawn means your ability to prepare for upcoming stages is optimized. Get in with for a conversation about how we can support your Owner Build. Intellichoice has 15 years of experience in Owner Builder loans. We work with a group of banks and lenders that still believes in helping the average Aussie in securing an owner builder home loan. Working with us gives you access to the best lenders in Australia, with the best interest rates and loan features perfect for your circumstance. Video Transcript Only builder home loans differ from standard loans in so much as when you are constructing using a fixed price building contract. That fixed price building contract is provided to the lender and that’s really what the lender lends against any progress draws that occurred throughout that process they’re paid directly to the builder. If you are going to own a build, you’re going to have to be prepared to outlay, be reimbursed.

Intellichoice Owner Builder Loan Stages
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Understanding why Intellichoice Owner Builder Loans differ from Traditional Loans

ByDarin Hindmarsh

Owner Builder Loan Difference vs Traditional Home Loans Owner builder loans are very different from the traditional home loans that we have in Australia. Unlike the usual mortgages homeowners avail, owner builder loans are more rigorous and require a different set of requirements, unlike regular home loans. In an Owner Builder setup, the client applying for a loan is a contractor that will owner build their home. It is not enough to have experience in constructing or be an employee in a construction company to be able to get access to funds that will help you build your own home. You will need to be a registered contractor – complete will all the documentation, permits and licenses that prove your authenticity as an able contractor. Banks and lenders are also more critical when receiving and approving owner builder loans applications. Owner builder loans are considered as high-risk loans. There are a lot of processes and people involved in construction. Such processes, when handled inappropriately can potentially halt the construction or in some cases leads to an incomplete construction project. When this happens, this puts the repayment of the approved loan at risk. Understanding why Intellichoice Owner Builder Loans differ from Traditional Loans ” and the body should read: “This video provides insight into how Owner Builder Loans are different from the Standard Residential Construction Loan that most people use for building a home with a registered builder. We cover the loan ‘Draw-Down Stages’ for Owner Builder Loans, what information is required when applying for loans and the significant differences between the lending types. Understanding how Owner Builder Loans are set up and drawn means your ability to prepare for upcoming stages is optimized. Get in with for a conversation about how we can support your Owner Build. Intellichoice has 15 years of experience in Owner Builder loans. We work with a group of banks and lenders that still believes in helping the average Aussie in securing an owner builder home loan. Working with us gives you access to the best lenders in Australia, with the best interest rates and loan features perfect for your circumstance. Video Transcript Only builder home loans differ from standard loans in so much as when you are constructing using a fixed price building contract. That fixed price building contract is provided to the lender and that’s really what the lender lends against any progress draws that occurred throughout that process they’re paid directly to the builder. If you are going to own a build, you’re going to have to be prepared to outlay, be reimbursed.

Expatriates-We Really Understand Your Mortgage Needs!
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Expatriates-We Really Understand Your Mortgage Needs!

ByDarin Hindmarsh

Leaving Australian soon – or maybe already have? There are many things to consider about investing in Australian Property as an Expatriate, including facing potentially significant penalties if you fail to settle on time. Watch this video to gain a deeper understanding of issues that could arise. An Intellichoice Broker once flew to Europe to sign documents to avoid a $100,000.00 loss to a client if not settled on time! Our commitment to ensuring the best client outcome is second to none. If you think you would benefit from further conversation about your purchase, please reach out to us Having a home in Australia, even while working or living abroad is possible for qualified Australian citizens through an Expat Foreign Home Loan. Through an application process that is best pursued with a mortgage broker, based in Australia, it is possible to purchase your new home through a loan or invest in a new property on Australia while living overseas. The process involves the usual requirements needed in applying for a traditional home loan. However, you will need to provide extra documentation in your application since you are going to pay for your home loan overseas and with foreign income. There are also specific requirements to be able to avail a certain LVR that you would want to apply on your loan. To learn more, talk to our expert mortgage specialists today. Video Transcript Some of the reasons why we find people prefer to use Intellichoice than perhaps other lenders is one we appreciate the distance and what’s it’s like living overseas. Sometimes the mailing systems aren’t the same access to notaries or people who sign documentation aren’t quite the same having people that understand the differentials in time and we’re willing to stay up late or get up very very early to speak with clients, in fact some of our brokers are in one case we’ve been willing to travel to France to have documentation signed and I think you’d find that in many brokerages today and we actually enjoy and you know we get praise from all parties concerned whether they be you know the builders, the developers, the clients themselves, their legal team, so they find it very easy to use us.

Expatriates-We Really Understand Your Mortgage Needs
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Expatriates-We Really Understand Your Mortgage Needs!

ByDarin Hindmarsh

Leaving Australian soon – or maybe already have? There are many things to consider about investing in Australian Property as an Expatriate, including facing potentially significant penalties if you fail to settle on time. Watch this video to gain a deeper understanding of issues that could arise. An Intellichoice Broker once flew to Europe to sign documents to avoid a $100,000.00 loss to a client if not settled on time! Our commitment to ensuring the best client outcome is second to none. If you think you would benefit from further conversation about your purchase, please reach out to us Having a home in Australia, even while working or living abroad is possible for qualified Australian citizens through an Expat Foreign Home Loan. Through an application process that is best pursued with a mortgage broker, based in Australia, it is possible to purchase your new home through a loan or invest in a new property on Australia while living overseas. The process involves the usual requirements needed in applying for a traditional home loan. However, you will need to provide extra documentation in your application since you are going to pay for your home loan overseas and with foreign income. There are also specific requirements to be able to avail a certain LVR that you would want to apply on your loan. To learn more, talk to our expert mortgage specialists today. Video Transcript Some of the reasons why we find people prefer to use Intellichoice than perhaps other lenders is one we appreciate the distance and what’s it’s like living overseas. Sometimes the mailing systems aren’t the same access to notaries or people who sign documentation aren’t quite the same having people that understand the differentials in time and we’re willing to stay up late or get up very very early to speak with clients, in fact some of our brokers are in one case we’ve been willing to travel to France to have documentation signed and I think you’d find that in many brokerages today and we actually enjoy and you know we get praise from all parties concerned whether they be you know the builders, the developers, the clients themselves, their legal team, so they find it very easy to use us.

Intellichoice Owner Builder Loan Stages
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Intellichoice Explains the Importance of Understanding End Market Value for an Owner Builder

ByDarin Hindmarsh

Intellichoice Explains the Importance of Understanding End Market Value for an Owner Builder This video will provide insight into how you should consider the End Market value for an Owner Builder Home Loan when making an application for a mortgage with us. Many lenders use the ‘Net cost of Land and Materials’ approach when valuing (appraising if you are in the US) to determine the amount of money they are willing to advance for an Owner builder Loan. This often means you need to contribute much more to your build and can put your dreams of Owner Building out of reach. Intellichoice works closely with the Lender and Valuers to submit your project in the best possible light – something you cannot be sure of with inexperienced brokers or bankers in this niche area of lending. Watch the video for a better understanding of End Market Value for Owner Builders and call us to clarify or continue the conversation. Video Transcript: End Market Value is really critical to an owner builder because that’s how the lender actually calculates what they’ll lend you for your owner builder projects. So for example, if I have a property and I know that when I’ve completed it, the value of that property is going to be $500,000. Then at 60%, the lender is prepared to lend me $300,000 for my land and my construct. Now quite often when I speak to people they’re not really sure as to what the inter market value of their property will be, so we try to suggest to them to go back to talk to the real estate agent who they’ve purchased the land through or to do some realestate.com searching, because understanding that at the start of your process, can really really help you and provide confidence that you’ll be able to get money that you need to actually construct.