Browse Forums Home Finance 1 Oct 06, 2009 11:18 am We are borrowing 80% value of our construction from BOQ and I provided them with our first progress payment 10 days ago. The advised us last week that they could not release the payment because they didn't have a copy of the Builders Risk Insurance, which I sent them on Friday, they have now come back saying they can not release the payment until we have all of 20% funds in our bank account (we are short about 5%). This is the first time I was aware that these funds must be available before a drawdown can commence, is this normal practice? I think we'll just pay the progress payment as we are now 7 days over when the payment was requested so can therefore be liable for interest to the builder. Any feedback will be greatly appreciated! Building with Dennis Family Homes - Hartley 280 Location: Settlers Run, Botanic Ridge Re: First progress payment question 2Oct 06, 2009 7:09 pm Our bank has told us something similar. When we worked out with the bank how much funds we are taking through them, they told us that we have to pay all of our part first before we can touch the banks funds. So for example if we were in your case we have to pay our 20% first before we can touch the 80% they are lending. Re: First progress payment question 3Oct 06, 2009 7:50 pm JJ305 Our bank has told us something similar. When we worked out with the bank how much funds we are taking through them, they told us that we have to pay all of our part first before we can touch the banks funds. So for example if we were in your case we have to pay our 20% first before we can touch the 80% they are lending. ^ yeah that. They always use your money first before they dip into their own pockets. Caz & Co ALL MOVED IN!! Now comes all the hard work-decorating.... [b]Blog: http://cazoraz.blogspot.com/ Settling in Thread: viewtopic.php?f=31&t=36993 Re: First progress payment question 4Oct 19, 2009 1:25 pm I'm not sure if this is of any help but are you talking about the deposit to be given to the builder (say 5%). If so, the banks won't release any funds for the deposit stage hence why they will only release funds for the construction of the property. Re: First progress payment question 5Oct 19, 2009 1:29 pm cazoraz JJ305 Our bank has told us something similar. When we worked out with the bank how much funds we are taking through them, they told us that we have to pay all of our part first before we can touch the banks funds. So for example if we were in your case we have to pay our 20% first before we can touch the 80% they are lending. ^ yeah that. They always use your money first before they dip into their own pockets. But isnt this better for you anyway? - so you dont pay interest until you are using borrowed money? Re: First progress payment question 6Oct 20, 2009 10:59 am Hi Guys, Generally you pay 5% deposit at contract signing minus any initial deposit(s) you have paid. Progress payments from there will be roughly: • Base – 10% (i.e. once the slab has been poured) • Lock up – 35% • Fixing – 25% • Completion -10% Kind regards, Jason Re: First progress payment question 7Oct 20, 2009 11:15 am cazoraz JJ305 Our bank has told us something similar. When we worked out with the bank how much funds we are taking through them, they told us that we have to pay all of our part first before we can touch the banks funds. So for example if we were in your case we have to pay our 20% first before we can touch the 80% they are lending. ^ yeah that. They always use your money first before they dip into their own pockets. This is also my understaning as to how this all works. And yes, it's better to use your money first as there is no interest charged, which is great! Building Thread viewtopic.php?f=31&t=13002 Site start: 8th July 2009 Handover: 11/12/2009! 5 months total build time. 40 sqs of luxuary...Bliss! Re: First progress payment question 8Oct 20, 2009 11:38 am We also had to put in our own funds before the bank chipped in. Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: First progress payment question 9Oct 20, 2009 12:11 pm Yeah there are a number of construction loans out there that have various requirements. kind regards, Jason Re: First progress payment question 10Oct 29, 2009 8:28 pm My bank has asked for a building permit before they will release any funds. Means I had to pay the contract deposit 5% myself. They say I can claim it back once the building permit is issued. I wouldn't be surprised if I never see that money again. And all this is after I put up 22K for the land. Banks are pretty tight these days. Gravity. Its the law. At lock-up stage(lock-up stage) https://forum.homeone.com.au/viewtopic.php?f=31&t=25438 regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. Hence get a lawyer, it… 4 11850 There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 6680 1) I had requested R6 ceiling insualtion batts, however I noticed that on some areas there are huge gaps which will allow hot air to sweep in, and also noticed black/grey… 0 3585 |