Jun 23, 2020 9:51 pm
Hi guys , 1st time at this , whoever created this forum , thank you , it has been super helpful.
Do builders demand the 5% deposit upfront before signing the HIA contract?
i wanted to have both the land and the construction loan settle together , however it didnt happen. The land settled 1st and i put all my equity in the land to avoid LMI.
Hoping to get all progress payments including the 5% deposit on the loan
I want to build with Coral Homes , can anyone advise if they are strict or flrxible about the deposit payment
Re: 5% BUILD DEPOSIT2
Jun 24, 2020 9:59 am
The 5% deposit is when you sign the contract. Can be right before or right after. Is your construction loan approved ? It's highly unlikely your construction loan will be approved if you do not have your share of funds to show to the lender.
Re: 5% BUILD DEPOSIT3
Jun 24, 2020 10:09 pm
Construction loan has not been approved yet have not not applied for it yet.
i havent signed the HIA contract yet. Given the land settle first , was looking to use the equity in the land and get a 100% lend on the construction part . Thats why i looking to get even the 5% deposit financed by the construction loan as well.
My research tells me its probably doesnt work that way.
i had heard some builders are flexible with the deposit payments .
Re: 5% BUILD DEPOSIT4
Oct 13, 2020 2:44 pm
I was hoping for the same with our situation
How did you go with the 5% deposit for the build? When we got the valuation for the land, it was of the same price right in the middle of the pandemic so I am hoping once everything recovers, it would give us some equity to to borrow more for the build next year as well.
Fell in love with Sorrento Grand Retreat by Carlisle
Saw the land- 02/09/20
Contacted agency- 02/09/20
Made offer- 02/09/20
Pay 10% deposit 08/10/20
Land settlement 26/10/20
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