Determining the value of the home you’re building

When you’re building your own home, valuing your home is an important part of securing your home loan. Your lender must be able to determine the final value of your property once all construction is finished. You’ll need to provide your lender with the following documents:

If you’re using a contract builder

• Final tenders and itemised quotes from your builder
• Council approved plans and specifications, along with any conditions of approval specified by the local council.

If you’re an owner builder

• A completed "Owner Builder Estimate of Construction Costs" form available from any St.George branch
• A written schedule of progress payments, showing how much money you will need as you build and when. It should also detail the works you intend completing at each stage. This will assist the valuer in assessing the projected cash flow. Your lender will review this schedule, with the progress payments subject to negotiation.
• Written details of where you intend to purchase the building materials, the credit terms available and copies of any trade labour cost and quotes already arranged
• Evidence of your savings you will be using to fund construction to the stage when the lender will release the loan funds
• Your current Owner Builders’ permit
• Evidence of current All Risks Insurance
• Council approved plans and specifications, along with any conditions of approval specified by the local council
• Written details of any work that is to be carried out by you as owner-builder or family, friends and subcontractors including all trades such as plumbing, electrical work, bricklaying, carpentry, roof tiling, wall and floor tiling, gas fitting, painting and concreting. Highlight the works to be carried out at no cost, and provide details of any works to be completed at a discounted rate by you, your family or friends. You will also need to supply a complete costing of the works to be subcontracted to qualified tradesmen (including copies of written quotes).

Remember - always avoid payments in full until you are satisfied the job is complete to the agreed stage. If the work is unsatisfactory or incomplete, you may have trouble getting your money back.

Talk to us about building your home

For more information about the documents you need, speak to a St.George home loan expert on 13 33 30 or drop by a St.George branch.