Changing selections after getting bank loan

SydneyElle · Aug 26, 2023 8:15 am

Hi,

We are part way through our build and our builder has gone into liquidation. We will get some money to finsih from HBCF but that plus what is left on our loan will leave us with a lot more moeny to find that we don't have.

Is there are requirement that we complete as submitted to the bank - i.e. finishings and appliances? Can we go cheaper on joinery ie polytec instead of stone in bathrooms and 20mm stone on the kitchen bench where we had 40mm stone and get basic appliances?

I know you will say ask the bank but I am cautious of triggering something.

We really do not know how we will finish the build and it's making me sick.

Thanks

building-expert · Aug 26, 2023 9:21 am

If you dont have the money you dont. Finish your home however you can. The bank does not care about your kitchen stone but only that you make repayments and that the value of your home(as security for the loan) is there.

CallyNoon · Aug 29, 2023 8:00 am

Have you gone back to HBCF, I would expect insurance to cover what was lost.

SydneyElle · Aug 29, 2023 8:06 am

CallyNoon

Have you gone back to HBCF, I would expect insurance to cover what was lost.

No it doesn’t. There is a cap and we will be out of pocket ~ $200k. We are not the only ones. And the builders still have their license - only the company license was cancelled. It’s a disgrace.

Ashington Homes · Aug 30, 2023 4:29 am

SydneyElle

Hi,

We are part way through our build and our builder has gone into liquidation. We will get some money to finsih from HBCF but that plus what is left on our loan will leave us with a lot more moeny to find that we don't have.

Is there are requirement that we complete as submitted to the bank - i.e. finishings and appliances? Can we go cheaper on joinery ie polytec instead of stone in bathrooms and 20mm stone on the kitchen bench where we had 40mm stone and get basic appliances?

I know you will say ask the bank but I am cautious of triggering something.

We really do not know how we will finish the build and it's making me sick.

Thanks

Sydneyelle

I am so sorry to read about your predicament. I genuinely can't image the stress you are under.

I totally agree with building-expert in that you need to do whatever you can to complete and get a roof over your heads. The bank wont care about what type of stone etc you install.

Not sure what stage you are at, or if you are going the owner builder route or not. If you are and you need some advice or help with trades to get you over the line and out of this mess, feel free to call me and I will do whatever I can.

Cheers

Simeon

Ardo · Aug 30, 2023 8:14 am

How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan?