April 14, 2009 | | Comments 2

The Answer to Finding Owner Builder Finance

If you are serious about Owner Building and you need to get a loan in order to finance your project then you really need to read this article.

Owner Builder Finance Now AvailableYou may already have spoken to some banks and lenders and are feeling either confused or frustrated by the outcome. Or you may not yet have spoken to your bank and you are assuming that it is going to be a fairly straightforward process.

Here’s an important fact you need to come to terms with: Banks and Financial Institutions generally do not lend to Owner Builders.

Surprising, isn’t it? Especially considering the fact that Owner Builders make up a significant portion of the residential building market.

Why don’t Banks and Financial Institutions support Owner Builders?

The one word answer is: risk.

It doesn’t matter if you are Owner Building from scratch, or if you are Owner Building a Kit Home, please understand this: most (meaning more than half) of all Owner Builders fail to successfully complete their project on time and on budget. Because the finance industry know this, they are reluctant to lend to Owner Builders. Owner Builders are simply too high risk and cause problems for the financial institution.

Another important factor you need to be aware of is that the standard financier does not truly understand the needs of the Owner Builder. They lack flexibility in their approach and often fail to accommodate your needs, further supporting the ‘avoid lending to Owner Builders’ perception adopted by many financial institutions.

So what can you do about it?

Firstly, understand that as an Owner Builder your finance needs are very different to other borrowers. The process is not the same as that of a standard building contract with a project home builder. Owner Builders need flexible funding solutions to allow them access to the money needed to pay for their suppliers and trades as they work through the building project. As an Owner Builder you won’t get 30 day accounts to pay your bills. You will have to pay deposits on many of your purchases and then the balance upon delivery. Funding availability when you need it is critical. If you don’t have that then you are at risk of failing before you even start.

UBuild Homes recognizes this challenge and has been lobbying financial institutions to take a different approach when dealing with Owner Builders. Our pitch has been that customers of UBuild Homes should be treated differently because all of our UBuild Homes Premium Package Customers successfully complete their projects; on time and on budget. As a UBuild Homes Premium Package Customer the risks are dramatically reduced – for both you and your Bank.

Unfortunately the big banks have remained negative towards owner builders. It’s hard to blame them considering the statistics.

Owner Builder Finance is best left to those smaller lending institutions that have a sound relationship upon which to work. That is why we recommend working with our Finance Providers at Coastline Credit Union.


Because the Coastline Credit Union have recognised that if an Owner Builder is operating under a UBuild Homes Premium Package System then risk is minimised to a point where the Credit Union’s money is safer than virtually any other building process. This has been tested over many years and many loans and they now want to work actively with our customers. This is the only financial institution in Australia that is actively seeking out Owner Builders. But only if they are willing to use a quality, proven system.

This is a unique situation for the Owner Builder market, and one that UBuild Homes is proud to offer you.

Why not take this opportunity to chat to us about it. We can introduce you to people at the Coastline Credit Union who are properly and specifically trained to deal with the needs of Owner Builders. There’s no obligation and it could be your way of finding out the best finance option for you, and will help you on your path to building your dream home.

Just visit Owner Builder Finance to find out how to obtain your Owner Builder Finance.

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  1. g,day Barry, the term OWNERBUILDER can mean a lot of things,from an owner organiser to ownertradey or to the system they use to control the job , i think the term has been worn out the banks and accounts who live in a differant world, some homes evolve as the owner finds a bargain or finds a new material to incorperate in the creation of the home, ask some architects they are allways inventing ,some want to save money, some want to be uneque and individual its about personality its not allways about money!.builders want to make money building and owner builders want to save money building,,,,,both don,t allways get what they want!!

  2. hey I know this problem from personal expirience and the pain and frustration of having a construction project stall from the lack of finance and funding available due to the predjudice against owner builders and with what is probably some of the least affordable housing in the world today with a shortage that is now referred to as the housing crisis it is time that things should change and owner builders should be valued for there originality innovation and contribution twards affordable housing
    I have been thinking of the idea of an ownerbuilder finance and construction alliance and would like to talk with anyone serious about creating a more efficient better way through the ownerbuilder process

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