Browse Forums Home Finance 1 Jun 25, 2010 9:13 pm Hi guys, Did a search on this but found nothing - and my post about my home building woes hasn't yielded any information, so thought I'd ask here. Can anyone tell me what happens if the construction period on your home takes longer than 12 months? I paid a deposit in March to my builder when I got my loan approved, and due to numerous delays, the base isn't ready yet. Completion by next March is ideal, but looking increasingly unlikely. If it helps, the contract is with a smaller builder and in an existing area. Tried searching through terms and conditions of my loan, but it only says "Construction must be completed within 12 months". Anyone else been in this position? What happened? Re: Construction period of loan 2Jul 01, 2010 10:04 pm I think once you start drawing the loan, it will be fine. i think the thing is you have to draw your loan within six months of approval. otherwise you will have to update your loan VICTORY 1800, EN-SUITE, DOUBLE GARAGE, FAMILY ROOM AND ALFRESCO Land Settled: 20 July 2010 Site Scrap: 30 August 2010 Slab Pour: 20 September 2010 Frame Complete: 23 September 2010 Fascia and Gutters: 28 September 2010 Roof Complete: 06 October 2010 Lock-up complete: 28 October 2010 Plaster complete: 29 October 2010 Fix-out complete: 22 Nov 2010 PCI 7 FEBRUARY 2011 Re: Construction period of loan 3Jul 08, 2010 3:42 pm Most lenders have some kind of condition in their loan agreement which says that you must complete construction within 6 or 12 months. The reality of construction is that not everything goes to plan! I am yet to see a lender enforce this condition. So it appears to me to be one of those things where they put it in there so that if a customer is dragging the chain and not completing their home then they can force them to do so, but they do not force them / put them in default if they are making an effort. I would recommend that you contact the bank clerk / mortgage broker that setup your loan and ask them if the bank is likely to cause any problems with this. If you call the banks call centre then they may make a comment on your account which can cause problems, so better to speak to the person that got you the loan. Thanks Re: Construction period of loan 4Jul 14, 2010 9:06 pm Hi jb_money, thanks for your response. Wish I read it earlier, I rang the bank's call centre a few days ago! It was regarding a few questions though, and I asked about the 12 month term briefly. She told me if that did happen, it would be something they could sort out then but not to worry too much. Since my post, building has picked up again so it's likely that I'll meet the 12 month period afterall. However, who knows what could happen next! 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 20093 you need to understand the breakdown of warranties. 90 warranty is considered as minor defects rectification period where as the longer ones are more major/structural… 1 5694 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 36598 |