How do I pay the first progress payment

Dear all,

I was confused by my broker and custom service officer. My Lender is homeside. I borrowed 80% of contract price
I got my first progress payment invoice from builder mentioned the first progress payment is 15% of the contract price.

Also, I am eligiable for 18k first home grant and already get approved from SRO. So, I guess, first payment should be 18k + My own Contribution.

My Broker asked me to request 15% from my bank, and they will work out how much should I pay, how much they will pay. (I believe 18k Grant is in Banks' trust account now)

After I faxed authorization, 3 day passed. nothing happened, customer service officer told me, I need to made my own contribution up to 20%, then bank will start to transfer the money.

Question for now is. Should I transfer the money manually? If so, how much? since there are fees applied in the progress payment.

Thank you everyone to share your thoughts

Most lenders require you to make your own contributions as part of the first progress payment (and that includes the FHOG).

I suggest you speak to the payment centre at Homeside (where you faxed the invoice to) and ask them what they require from you to make the first part of their payment. No doubt they'll tell you exactly how much you need to pay them and where to transfer it to. Of course your broker could also act as the go between to find out that info for you.

I went through my usual bank (where I have my savings account) for my mortgage therefore they took my contribution straight from my bank account when making the first payment.

Hope that helps

Thanks grom40 for your reply. I don't have numbers for homeside payment center. Only the fax number.

My lender is pro-rating the FHOG over each progress payment, which is actually worse as it means I pay more interest. They only asked for $10k from the grant in the first payment.

It looks like homeside is a branch of the NAB so maybe try calling them. Otherwise try google. Or, as I said before, just ask your broker to sort it out for you (I didn't use a broker so afraid I'm not much help).

I think your converstaion got muddled.

You will need to pay the builder out of your own pocket until you hit the 20% of full contract price (Which will include your FHOG money).
Once you have spent that all the bank will start making progress payments

The above replies already answer the original question, so rather than double up i'll just agree with them.

However, you say the first claim is 15%? Is this the building deposit or does it also include slab/brickwork etc?

Just wondering as the builders are only allowed to claim 6.5% maximum under the HBCA 1991 for homes under the value of $500,000