Browse Forums Building A New House 1 Jan 07, 2009 3:31 pm Hi,
I am hoping someone may be able to answer a quick question. It's probably quite obvious but I am new to the world of building!! I understand as my builder has informed me that it is standard to pay 5% deposit on signing the contract - anyone know how this tends to work with the bank?? ie. do they pay the deposit or we need to?? The bank have just asked for a copy of the building contract??? Any input would be greatly appreciated. Bec Re: Payment question 2Jan 07, 2009 3:36 pm Usually the bank requires you to use your own money first - we've paid the 5% ourselves. After 4 years - we're in! Re: Payment question 3Jan 07, 2009 3:47 pm Hi,
It will depend on how much equity you have in the land presently that the bank holds as security. Also 5% is not necessarily the standard. Carlisle Homes that we are building with only requires a payment of 3%. Dale. Building the Monaco 32 with Carlisle Homes Check out our blog for photos and progress reports: http://www.beigefreehouse.blogspot.com . Re: Payment question 4Jan 07, 2009 4:01 pm 5% is the usual deposit in Vic, and it's what's set out in the standard HIA contract. It can be varied, but that's the norm.
If you've already put all your available funds into the land, then the bank will pay the deposit - If not, you pay and that forms part of your equity. So it depends on how much you're borrowing, how much you've already paid for land and so on. The bank will require copies of just about everything - contract, drawings, receipts for whatever you've paid and so on. Take it all in to your branch and make them photocopy it. I had better things to do with my time than photocopy umpteen pages for them.... And nothing is obvious if you've never done it before, so don't ever feel like any question is silly... Re: Payment question 5Jan 07, 2009 4:08 pm Depending on what your bank is doing, they as standard will only lend you 90 - 95% of the value of the land and house together. So if it costs $400k, they will lend you $360 - $380k.
But in some cases the deposit paid for the land will actually cover the additional 5% the bank wont lend you, and therefor you don't need to pay the builder out of your own pocket. Just add up what the house and land is costing, deduct the deposit the bank requires you to have and compare that to what you have already paid for the land, that should tell you how much extra you still need to pay out of your own pocket Built with Bentley homes in Doreen All moved in Dec 2009 Now for the garden! Our stuff so far viewtopic.php?f=31&t=16532 Re: Payment question 6Jan 07, 2009 4:44 pm I don't know what the norm is in SA, only what we did.
We bought a house/land package and we paid a deposit of $2000 (of our own money) on the land when we signed the initial contract, didn't have to pay the rest of the land until it titled some months later, at which stage we set up our construction loan with the credit union. We then paid $2000 deposit on the house (of our own money) and then drew down the installments from the loan as each stage done. Obviously this is not a set % as the land and the house were not the same value and is less than 1% of the house loan. Re: Payment question 8Jan 07, 2009 7:28 pm the bank paid ours but we did own the land finished building 40 square home on 5 acres with perry homes.working on the landscaping just finished pool deck with ://forum.homeone.com.au/viewtopic.php?f=31&t=2217 regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. Hence get a lawyer, it… 4 11885 There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 6691 1) I had requested R6 ceiling insualtion batts, however I noticed that on some areas there are huge gaps which will allow hot air to sweep in, and also noticed black/grey… 0 3604 |