Hi All,
I just want to find out what's people experience on this matter.
My loan has been approved by the bank (Colonial) for the construction of a new house. The builder is asking for the statement of guarantee that the bank will release the fund.
The problem is the bank wouldn't give that letter until I paid my share (I contribute 20% of he total construction cost). How can I pay first if the building hasn't started ? The only solution I think so far is to pay the builder 20% now so that I can get a bank guarantee. But that doesn't seem right, and I am not sure what is the implication.
The bank and the builder insist on their stand. So I am wondering what is the standard practice under my situation.
Any help or experience is appreciated, thanks.