Hello all
I am about to start the process of building a new home but am worried about costs to do other works ourselves such as a new deck and shed but not having the money to do so. Working in the industry I recall someone saying that people have requested larger PAs in their contract or PAs for other works that they want to do, so the bank has that figure to lend. Then after the contract they have requested a post contract variation be done to cancel the PAs & have the PA amount credited back. Essentially when the build is done these people have had this money credited back to them, so they can do any works after and they have the money to do so (some people even use the money to go on a holiday). I understand the money is still a part of the loan so isn’t “free money” but my question is does the money get credited back to the clients bank account? Or does the total just get adjusted off the final payment figure & the bank pays that figure accordingly and adjusts the loan amount?