Progress Payments ANZ Bank

Hi

Have been watching for a while and getting exciting about building my first house.

I have come into an issue today though were ANZ will not accept the Progress Payment Schedule that Clarendon have. As I imaging Clarendon have said tuff this is it and we are not budging.

Has anyone else had this particular issue with their bank and did you manage to get around it?

Do you have a mortgage broker? Have they said why they won't accept it? Have they asked to have more or less Each payment?

I am with ANZ and they did the same to me. My mortgage broker just requested the builder change the schedule and they did.

Surely the builder has dealt with ANZ before, and can advise what has happened in the past?

I am also having this problem with ANZ . ...they pre-approved the loan but they wont give formal approval till it gets sorted out. My mortdage broker said she will get it sorted out by speaking to Redink_Homes. Its very strange.

Hi

Hope you are in NSW. This happened to me and I know how stressful it is. CBA refused to accept my builder's schedule and this is what they emailed.

"Must include an industry standard Progress Payment Schedule. The Progress Payment Schedule must be reviewed to ensure it is within acceptable bank guidelines. It must be confirmed that no more than 50% of the funds are used for slab plus frame stages (stage 1 and stage 2)".

In response..

1- Builder provided a letter form HIA, which indicated that there is no such industry accepted standard in this regard (for NSW).

2 - Builder provided me with a letter from CBA which accepted a similar schedule couple of months before for a another customer.

3 - I wrote a letter to the bank indicating that I am agreeable to accept the builder's payment schedule.

Later ( probably having seen all this), bank informed my broker that the schedule is acceptable.

Hi Igu,
Gee you certainly got the run around didnt you. No I'm not in NSW, I'm in Perth. Its quite frustrating. I just want everything to go smoothly with no delays. I hope everything is sorted out for you now.
Thanks for your reply. ☺

I had the same issue, but my bank is NAB. What I did was sent an terse email to the builder and the bank and said you lot sort it out. Which they did.

The issue was the bank wouldn't pay any more than 65% at lock-up stage (their policy), but builder was asking for a dollar figure rather than percentage that when converted to a % was closer to 68%. It went above 68% because of where the builder was loading some variation payments.

Also had other issues with the bank and solicitor too. The problem here was the person in the bank I was dealing with was based in Victoria and I am in the ACT. The bank was asking for documents that don't exist in the ACT (apparently every state has slightly different conveyancing rules and documents).

Both builder and solicitor said NAB were always a difficult bank to deal.

All the while I was thinking what someone else here said, don't this lot deal with each other on a daily basis? So not sure how this kind of issue can ever happen.

Exactly.... its hard to believe that the 2 cant get it together. Will be taking your advice and telling them to sort it out amongst themselves. ...