Browse Forums Home Finance 1 May 18, 2009 3:48 pm Hi all, We are settling on our land this wednesday, and prestart with our builder is next monday. However last week we received a letter from our bank saying they want "confirmation of council approval in the form of a letter, or a stamp on the building plans" so they can complete processing. My builder called today and explained that council approval happens up to 4 to 6 weeks after prestart, which would delay the bank 'processing'. Is this a normal request from a bank? Re: Bank wanting council approval form before releasing funds? 2May 18, 2009 4:48 pm Hi Rex, If you approached the bank for a construction loan then yes, this is a normal request. Most lenders will require the building contract & council approved plans prior to issuing unconditional approval. For vacant land loans, this is not applicable. You can settle on the land without providing the plans and build whenever you like. Obviously, you will to provide the bank with the plans & building contract prior to them disbursing any funds for construction. Re: Bank wanting council approval form before releasing funds? 3May 19, 2009 4:16 pm Thanks Bill. As I'm undertaking a 'House & Land Package' it sounds as if they have everything they need for Land Settlement, but for the builder (construction) they'll then need the council approved building plans which will come before the slab is layed, which is a few weeks anyway. All that panic for nothing! Re: Bank wanting council approval form before releasing funds? 4May 21, 2009 3:48 pm Hi Bill, another question if you don't mind? We settled on the land yesterday. Our loan is with Westpac. The full amount was credited to us, and we have the remainder for the construction as a credit in our 'Rocket Repay' Account. Is the full amount of LMI deducted at settlement (yesterday) or do we pay it in installments as the developer/builder is paid? My Broker has given me an itemised list of deductions (bank cheque, LMI, mortgage rego etc.) and don't think we owe anything else, beyond monthly repayments. I'm trying to figure out if we can expect any more nasty surprises from the bank. Thanks Re: Bank wanting council approval form before releasing funds? 5Jun 22, 2009 9:54 pm Bill does Westpac have a standard progress payment schedule for construction loans in NSW you could share. how can i get the 5% deposit financed by the bank. what happens if the builder insists on higher than standard payment schedules e.g 25% for slab instead of 10% etc I couldn't attached the photo for some reason. Here is the link to the photo https://pin.it/79jwdMp 1 3109 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 3148 1 2965 |