Owner Builder Loan This Pandemic: Is It Worth It?
With the promise of continued inflow of projects in the home building sector, the HomeBuilder scheme has started to reap some immediate results. But is it worth getting an owner builder loan at this high time of uncertainty?
READ MORE: A Beginner’s Guide To Owner Builder Loans
Easing in restrictions
Immediately after restrictions due to Covid-19 pandemic were lifted, home buyers flock to their lenders to inquire about home loans. By July, the government efforts seemed to work as new loan commitments had increased by 11.8 per cent compared to the same period last year.
The HomeBuilder scheme primarily aimed to put tradies, homebuyers, property brokers, and home builders alike back in business again. And as a result, will address economic hardships that many sectors have experienced as a direct effect of the worldwide lockdown.
A separate analysis from the Australian Bureau of Statistics (ABS) indicated that for two consecutive months, the number of loans approved to purchase residential blocks of land has increased by 30 per cent.
Compared a year ago, the approved loan for the purchase of residential lands is 69.9 per cent higher.
READ MORE: How Do Owner-builder Loans Work?
What’s in it for you?
With this new scheme; tradies, property agents, and teachers can now go back to work after months of either being barred from working due to the country-wide restrictions or were displaced from their work.
The scheme also promises to ease up the bureaucratic processes that slow down progress of projects or mobility of services across the country or within jurisdictions.
As part of its fiscal stimulus package, the Australian government rolled out the HomeBuilder scheme with the objective of encouraging more people to avail of loans for home renovation or home builder works.
Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today.!