Browse Forums Building A New House 1 Jul 23, 2009 9:55 am Hi All, We are about to sign our unconditional loan approval but one of the requirement is that we need to give the bank our original land title certificate for there security. Does anyone know whether this is standard or there's something fishy about it? We are only borrowing funds to construct the house as we fully own our land with no finance. I am a little concern giving them our original land title certificate. Any comments are much appreciated. Karma - what goes around comes around sooner or later...... Re: Unconditional Loan Approval 3Jul 23, 2009 10:19 am Of course it is normal! Mortgages are secured debts so the bank registers their mortgage on your title and then holds the title as security for the duration of the mortgage. They're not going to hand over hundreds of thousands of dollars to you without security! What would stop you from selling the house and disappearing?! Building a Wisdom Homes Impression 33 MkII http://lilypadintheponds.blogspot.com/ We have the keys! Tiling in progress... Re: Unconditional Loan Approval 4Jul 23, 2009 10:26 am PnSdreams Yes this is normal; you can not differentiate between the land and the house. The back will take a mortgage over the land not the house, as the house is worthless with out the land. You will need to provide the bank with the original Certificate of title which they will hold until you pay back the debt that the mortgage covers. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 18894 1 2884 Hi Minho I have heaps of experience in Ku-ring-gai with both DAs and CDC ( this is the main area we build in). DA's are taking 12-18months and CDC's we have been doing… 1 3132 |