Compare owner builder loans

Find home loans from a wide range of Australian lenders that best suit your needs, whether you're investing, refinancing or looking to buy your first home. Compare interest rates, mortgage repayments, fees and more. - Data last updated on 18 Jun 2018

Compare owner builder loans

Breakfree Package Fixed Rate Home Loan (Low Doc) 5 Years
Advertised rate
4.59%Fixed - 5 years
Comparison rate*
5.05%
Monthly repayment
$1,280
Real Time Rating™

3.07 / 5

Compare
Choice Package Tailored Home Loan Fixed (Interest Only in Advance) 2 Years
Advertised rate
4.19%Fixed - 2 years
Comparison rate*
5.06%
Monthly repayment
$1,221
Real Time Rating™

2.62 / 5

Compare
Choice Package Tailored Home Loan Fixed (Interest Only in Arrears) 2 Years
Advertised rate
4.29%Fixed - 2 years
Comparison rate*
5.06%
Monthly repayment
$1,236
Real Time Rating™

2.57 / 5

Compare
Premium Investment Loan Fixed 2 Years (Principal and Interest)
Advertised rate
4.34%Fixed - 2 years
Comparison rate*
5.06%
Monthly repayment
$1,243
Real Time Rating™

3.24 / 5

Compare
Tailored Home Loan Fixed (Principal and Interest) 2 Years
Advertised rate
3.98%Fixed - 2 years
Comparison rate*
5.13%
Monthly repayment
$1,191
Real Time Rating™

3.01 / 5

Compare
Choice Package Tailored Home Loan Fixed (Interest Only in Arrears) 5 Years
Advertised rate
4.99%Fixed - 5 years
Comparison rate*
5.14%
Monthly repayment
$1,341
Real Time Rating™

2.25 / 5

Compare
Low Doc Fixed Options Home Loan (Principal and Interest) 3 Years (LVR < 60%)
Advertised rate
4.19%Fixed - 3 years
Comparison rate*
5.15%
Monthly repayment
$1,221
Real Time Rating™

3.16 / 5

Compare
Low Doc Fixed Options Home Loan (Principal and Interest) 3 Years (LVR 60%-80%)
Advertised rate
4.19%Fixed - 3 years
Comparison rate*
5.15%
Monthly repayment
$1,221
Real Time Rating™

3.16 / 5

Compare
Choice Package Tailored Home Loan Fixed (Interest Only in Advance) 5 Years
Advertised rate
4.89%Fixed - 5 years
Comparison rate*
5.15%
Monthly repayment
$1,325
Real Time Rating™

2.37 / 5

Compare
Choice Package Tailored Home Loan Fixed (Interest Only in Arrears) 4 Years
Advertised rate
4.99%Fixed - 4 years
Comparison rate*
5.15%
Monthly repayment
$1,341
Real Time Rating™

2.21 / 5

Compare
Choice Package Tailored Home Loan Fixed (Interest Only in Advance) 4 Years
Advertised rate
4.89%Fixed - 4 years
Comparison rate*
5.16%
Monthly repayment
$1,325
Real Time Rating™

2.31 / 5

Compare
Premium Investment Loan Fixed 1 Year (Principal and Interest)
Advertised rate
4.74%Fixed - 1 year
Comparison rate*
5.17%
Monthly repayment
$1,303
Real Time Rating™

2.91 / 5

Compare
Tailored Home Loan Fixed (Principal and Interest) 4 Years
Advertised rate
4.69%Fixed - 4 years
Comparison rate*
5.18%
Monthly repayment
$1,295
Real Time Rating™

2.91 / 5

Compare
Premium Investment Loan (Principal and Interest)
Advertised rate
5.17%Variable
Comparison rate*
5.21%
Monthly repayment
$1,368
Real Time Rating™

2.88 / 5

Compare
Tailored Home Loan Fixed (Interest Only in Arrears) 3 Years
Advertised rate
4.39%Fixed - 3 years
Comparison rate*
5.22%
Monthly repayment
$1,250
Real Time Rating™

2.45 / 5

Compare
Low Doc Fixed Options Home Loan (Principal and Interest) 2 Years (LVR < 60%)
Advertised rate
4.09%Fixed - 2 years
Comparison rate*
5.23%
Monthly repayment
$1,207
Real Time Rating™

2.92 / 5

Compare
Low Doc Fixed Options Home Loan (Principal and Interest) 2 Years (LVR 60%-80%)
Advertised rate
4.09%Fixed - 2 years
Comparison rate*
5.23%
Monthly repayment
$1,207
Real Time Rating™

2.92 / 5

Compare
Tailored Home Loan Fixed (Interest Only in Advance) 3 Years
Advertised rate
4.29%Fixed - 3 years
Comparison rate*
5.23%
Monthly repayment
$1,236
Real Time Rating™

2.52 / 5

Compare
Tailored Home Loan Fixed (Principal and Interest) 1 Year
Advertised rate
3.99%Fixed - 1 year
Comparison rate*
5.25%
Monthly repayment
$1,192
Real Time Rating™

2.67 / 5

Compare
Tailored Home Loan Fixed (Interest Only in Arrears) 5 Years
Advertised rate
5.09%Fixed - 5 years
Comparison rate*
5.30%
Monthly repayment
$1,356
Real Time Rating™

2.21 / 5

Compare
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Owner builder loans

Owner builder loans are also known as construction loans because they relate to a home you plan to build yourself to live in. Why build for yourself? You probably want to create a home style that will match your lifestyle, reflecting your character and values as well as your environment. It's a worthy ambition to create an original home and is one that owner builder loans can help you realise.

What are owner builder loans?

When you're planning to build your own home, it's highly likely you will need financial help, and possible lenders will look at your project to see if they want to support it. Owner builder loans are available to assist you to pay the cost of building a property but they are sometimes tricky to obtain. You will usually take out a loan over a short time period – it's usually around a year – so that you have sufficient time to get the home built. When the building is completed, you'll need to pay off the owner builder loan. It means that you'll have to refinance with a new loan, generally called an "end loan", and you can do this by taking out a standard mortgage over a number of years. Depending on what lenders are offering - and you should do plenty of research - you could get a variable mortgage or one with a fixed rate for a specified number of years.

How do owner builder loans compare to similar products?

These types of loan may be more expensive than an ordinary mortgage because the lender is taking a risk in that there is only an idea, not an actual tangible asset that can be easily valued. If your builder doesn't deliver to the standard expected, then your lender's investment could be devalued. If you are seeking this type of loan, you need to ensure that potential lenders can be confident that they are making a good investment.

Are there specific features that you need to think about for an owner builder loan?

You need to provide potential lenders with solid, reliable information about your building projects. You need a reputable building firm and detailed plans to be submitted as well as a realistic timetable. Be aware that building projects often overrun in terms of time and cost, so factor in some contingency when you take out a loan. You'll only pay interest on the money drawn down by the builder in most cases, so keep a close eye on what is happening on-site and what money for the loan is going out. If you have an architect, it will be their job to monitor the development. It will cost you, but sometimes it's worth having a professional available, especially if you have busy work and social schedules.

Is it risky?

There are risks associated with these loans, but risks within your control can be mitigated. Some risks, for example a contractor going bankrupt, cannot be controlled by you. Keep your project on track, and especially on time, and at the end, you may have had a few upsets but you will emerge with the home of your dreams.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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