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Owner builder finance WA, for builds most lenders won't touch.
Building without a registered builder puts most lenders off. There is no fixed price contract, no builder's warranty, and the standard construction loan policy usually does not apply. We know which lenders will fund it and what they need to say yes.
- Founded by two former bankers
- Commercial and business finance specialists
- Perth based, working Australia wide
- MFAA member
Why most lenders won't do owner builder
Rockwall Finance arranges owner builder construction finance across Perth and Western Australia for new builds, knockdown rebuilds and major renovations. We are a broker, not a lender, which matters here more than most loan types because the number of lenders willing to fund owner builder projects is small and their policies vary widely.
The reason most lenders say no comes down to risk. On a standard construction loan, there is a fixed price building contract with a registered builder, home indemnity insurance behind the work, and a clear path to completion the lender can rely on. On an owner builder job, none of those exist. The owner manages the trades, the cost can run over, and if the build stalls there is no builder or insurer to step in. Most major banks will not lend on that basis at all, regardless of how strong the borrower is. The lenders who will do it are specialist and non bank lenders who assess the deal differently, and getting to them with a properly packaged application is the job we do.
What changes with the right lender
Owner builder finance still works as a progressive construction loan. Funds are drawn in stages as each part of the build is completed and verified, with interest charged only on what has been drawn. The differences from a standard construction loan are the deposit requirement, the documentation, and who verifies the stages.
- LVR 60 to 70 percent: most lenders cap the loan at 60 to 70 percent of the finished value, so you need 30 to 40 percent in equity or savings, well above the deposit a standard construction loan can run at.
- Quantity surveyor report: a QS report replaces the builder's fixed price contract as the cost basis. It sets out the work stage by stage and gives the lender a completion value to draw against.
- Stage inspections: some lenders require an independent inspection or QS sign-off at each drawdown stage before releasing the next payment, rather than relying on a builder's progress claim.
- Trades evidence: some lenders want to see that licensed contractors are engaged for the structural, electrical and plumbing work before they will approve the loan.
The WA owner builder permit
Before a lender will assess the application, and before any work starts, you need two permits in place. The owner builder permit is issued by Building and Energy WA under the Building Services (Registration) Act. It is required when the estimated value of domestic building work exceeds $20,000, which covers almost every new build and most significant renovations. To get it, you must own or co-own the property, and there is a six-year restriction between permits. The owner builder permit is not the same as the building permit, which is issued by your local permit authority, usually the council, before construction begins. Lenders want to see both.
One practical point worth knowing: under WA's home indemnity insurance rules, an owner builder who sells the property within seven years of the building permit generally has to take out home indemnity insurance for the buyer before the sale. It does not affect the finance, but it is part of the picture if you are building to sell rather than to live in, and it is a conversation to have with your settlement agent early.
What you need to get started
- Owner builder permit from Building and Energy WA
- Approved building permit from your local permit authority
- Full architectural plans and specifications
- Quantity surveyor cost report broken into build stages
- Evidence of licensed contractors for structural, electrical and plumbing work
- Land either owned outright or being purchased at the same time
We work through this list with you before anything goes to a lender. The applications that run smoothly are the ones where the documentation is complete before lodgement, and the ones that stall are the ones that hit a lender's conditions process halfway through a build.
Owner builder renovations and extensions
Owner builder permits in WA cover major renovations and extensions, not just new builds. If you are adding a second storey, a significant extension, or doing a full structural renovation, the finance works the same way as a new build: progressive drawdowns, a QS cost plan, stage inspections, and an LVR that reflects the absence of a builder's warranty. The lender field is the same narrow group. If the work crosses the permit value threshold and you own the property, owner builder finance is the right mechanism.
Where the renovation is smaller in scope, a standard construction loan or a refinance with an equity draw may be simpler. Tell us what you are planning and we will tell you which structure fits.
How it sits alongside standard construction lending
If you are using a registered builder under a fixed price HIA or MBA contract, a standard construction loan is the right product and the lender field is much wider. Our construction loan Perth page covers that in full, including house and land packages, knockdown rebuilds, and how the progressive drawdown structure works. Owner builder finance is specifically for the builds where you are the principal contractor and there is no registered builder on a fixed contract.
Frequently asked questions
How much can I borrow as an owner builder in WA?
Most lenders who will do owner builder finance in WA cap the loan at 60 to 70 percent of the finished property value, which means you need 30 to 40 percent in equity or savings. Some lenders may go slightly higher with strong security or a trades background, but the LVR on owner builder deals is almost always lower than a standard construction loan because there is no registered builder and no fixed price contract for the lender to rely on. The quantity surveyor report sets the cost basis instead, and the lender draws against it at each completed stage.
Do I need an owner builder permit to get finance in WA?
Yes, and you need it before most lenders will assess the application. In WA, if the estimated value of domestic building work exceeds $20,000, you need an owner builder permit issued by Building and Energy WA. You must own or co-own the property, and there is a six-year restriction between permits. The permit is separate from your building permit, which you also need before any work starts. Lenders want to see both.
What documents do lenders need for owner builder finance?
The core documents are: the owner builder permit from Building and Energy WA, an approved building permit, full plans and specifications, and a quantity surveyor cost report that breaks the build into stages and gives a completion value. Some lenders also want evidence of your trades background or licensed contractors booked for key stages, particularly structural, electrical and plumbing work. We tell you exactly what your specific lender needs before anything is lodged, so nothing holds up the drawdowns once construction starts.
Can owner builder finance cover a renovation or extension?
Yes. Owner builder permits in WA cover major renovations and extensions as well as new builds, provided the work value exceeds the permit threshold and you own the property. The finance works the same way: progressive drawdowns against a QS assessed cost plan, with inspections at each stage. The LVR and documentation requirements are the same as a new build, and the lender field is the same narrow one. If you are doing structural work or adding significant floor area, owner builder finance is almost always the right mechanism.
Get started
Want to talk it through?
Book a meeting or make an enquiry. We'll tell you whether it's fundable, how we'd structure it, and which lender we'd take it to. No obligation.