Browse Forums Building A New House Re: Payment schedule 2Jun 27, 2021 5:42 pm Ansh2016 The payment schedule which my builder Cham*** homes is asking 25%, 25%, 25%, 22.5% and 2.5% . My broker told CH in cooling off period that No bank is accepting this plan. What options do i have? Builders that are experiencing cash flow, price increases and problems on existing projects are front loading progress payments on new contracts... The Banks won't have a bar of it and that should have been explained to you by the broker. Goodluck Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Payment schedule 3Jun 27, 2021 5:45 pm StructuralBIMGuy Ansh2016 The payment schedule which my builder Cham*** homes is asking 25%, 25%, 25%, 22.5% and 2.5% . My broker told CH in cooling off period that No bank is accepting this plan. What options do i have? Builders that are experiencing cash flow problems on existing projects are front loading progress payments on new contracts The Banks won't have a bar of it and that should have been explained to you by the broker. Goodluck What shall a customer do if Bank don't approve loan? Re: Payment schedule 4Jun 28, 2021 4:12 am Ansh2016 The payment schedule which my builder Cham*** homes is asking 25%, 25%, 25%, 22.5% and 2.5% . My broker told CH in cooling off period that No bank is accepting this plan. What options do i have? Ansh2016 Thank god your broker is looking out for your best interests! It's illegal in NSW for any builder to ask for more than 10% deposit. Also, be aware that you can't be asked to pay the 10% deposit until the builder has secured HBCF insurance and given you a copy of the certificate. Has your broker given you the payment schedule the would be willing to accept? Depending on your build design it should be more like 10% deposit, 25% slab, 25% lockup ( there is huge amount of money in the slab, framing and roof these days, so it is not unreasonable to be up to 60% at lock up) 15% gyprock & paint, 15% kitchen & joinery and final payment of 10% Every builder has different cashflow requirements and probably different progress payment structures so what I have outlined is what I believe is fair. For me as a consumer I would want the full 10% held until completion, as you will find that is most of the profit, so you need he builder on the hook in case something needs attending too. Your question was what can you do? Below are my suggestions: 1. Ask the builder nicely, I guarantee they would have been through this before ( we all have). Your bank would not have been the first one to reject this structure 2. If they don't agree to the banks progress payment structure, go find another builder. There are half a billion builders in NSW at the moment. Anyway, I am sure Champion will agree to the banks needs and you will be fine best of luck Simeon Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: Payment schedule 5Jun 28, 2021 7:38 pm Adding to what @ashington Homes said, Most banks have a minimum allowed percentage as the first and final progress payments. For an example, Westpac requires it to be at most 20% for the slab, and a minimum of 10% for the final stage (check page 6). These restrictions are in place to protect you (and the bank of course) so a builder cannot take a exuberant amount of money at the start and just deliver a bad quality product at the end. Re: Payment schedule 6Jun 29, 2021 8:13 am curiousb Adding to what @ashington Homes said, Most banks have a minimum allowed percentage as the first and final progress payments. For an example, Westpac requires it to be at most 20% for the slab, and a minimum of 10% for the final stage (check page 6). These restrictions are in place to protect you (and the bank of course) so a builder cannot take a exuberant amount of money at the start and just deliver a bad quality product at the end. Curiousb Good post! Exactly, the banks put these in place to protect their money and customers at the same time. They need to make sure that the payments aren't too far ahead of the money actually spent in case there are issues with the builder and someone needs to step in to finish. Cheers Simeon Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. 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