ARTICLES AND USEFUL INFORMATION FROM THE PAAL KIT HOMES UPDATE NEWSLETTER
PAAL Newsletter Archive
- Building own home was a rewarding challenge
- Traditional farmhouse charm combined
- Kit Home Finance Made Easier
- Paal will help with your BASIX assessment
- Your home project is precisely managed by Paal
- Find your perfect exterior colour scheme
- New Stanthorpe launched at Queensland event
- Traditional style, fresh ideas in new Yarra
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Kit Home Finance Made Easier
Owner builders have sometimes found home financing to be a problem, unless they are selling an existing property. In recent years banks have been more reluctant to lend to owner builders.
Service One Alliance Bank has addressed this issue by arranging innovative home loan financing, specially tailored for owner builders.
"Our loans provide the opportunity to complete the home initially to lock-up, the phase of construction that has caused difficulties in the past," says Peter Masson, Head of Sales at Service One Alliance Bank.
PAYMENTS IN STAGES
"Loan payments are made to the owner builder in stages throughout the construction process, in the same way that professional builders are able to access finance.
"This is definitely not bridging finance, but consists of full-term home loans at competitive rates. Normal interest rates apply, currently in the range of 4.0 - 4.65 per cent. There's no financial penalty for borrowing for an owner build."
VERY GOOD RESPONSE
Peter has personally owner-built two homes and used a professional builder for a third, so he knows what he's talking about.
"We've had a very good response from owner builders since our targeted loans became available.
"Australia is catching up with overseas loan products to some extent. Whole estates of owner-built homes are being constructed overseas, with finance tailored to this way of building.
RELIEF TO OWNER BUILDERS
"Our opinion is that the market should have been offering these types of loans a long time ago, to give relief to owner builders."
Peter said a maximum construction period of 12 months is allowed with this type of home loan.
For more information on home financing for owner-building, visit our Finance page.
Their Paal home sold quickly and at full price
Five years after they built it, James and Ashleigh Latimore of Murrumbateman, NSW put their Paal home on the market and sold it at full price within a week.
"We held a weekend Open on Saturday and Sunday – and the offer was made on the Tuesday," said James.