What is owner financing?
Owner financing (seller financing) is when the seller lends the buyer part of the purchase price, repaid in instalments, instead of the buyer borrowing it from a bank. It is common in surf markets where foreign buyers rarely get a local mortgage.
Last updated · Property & listings glossary
About Owner financing
Terms — deposit, interest rate, length and what happens on a missed payment — are negotiated between buyer and seller and should be written into the purchase contract and, where possible, registered against the property.
- Also called
- seller financing, owner finance
Related terms
- Asking price
- The asking price is the price a seller or their agent puts on a listing. It is not the price the property sells for, which is negotiated and often lower.
- Due diligence
- Due diligence is the set of checks a buyer makes before committing to a property: the registry title and any liens, the survey and boundaries, zoning and coastal rules, permits, access, utilities and unpaid taxes.