Browse Forums Home Finance 1 Apr 01, 2012 1:54 pm Hi All Just wanting some clarification... we have just our loan approved through cba for construction... We have a $17k allowance for flooring as we wanted to pick our own carpet and floorboards. Our broker advised that we would need to complete prior to bank lending us the money. This doesnt make sense as if I had the money to do it I wouldnt borrow it. It was included in the building contract which went to the bank. It states that the flooring will be done after handover. Any recent experiences? Thanks Re: Confused about allowances and bank loans 2Apr 02, 2012 1:21 pm Hi Silvergum We have recently had a similar experience - If you read the post in the Finance forum titled 'Quotes required for mortgage on a new build' you will see a few posts which may be of help. Basically our broker put a note on the loan application to say that we will be doing our floor coverings / driveway etc after handover and as such the final payment will need to be made to the builder and then another 3 or 4 payments will need to be made to driveway guy / flooring people etc. I hope that makes some sense - it was hard for us to understand too - I would try speaking with your broker and ask them to explain further - our broker was all too happy to explain how it works a number of times until we understood how it all works - confusing stuff! Em Re: Confused about allowances and bank loans 3Apr 03, 2012 1:26 am That doesn't seem right, CBA is happy to accept valuation value and payment based on "future" improvement / value adding -- thats the whole point of constructions loans....it just require the broker to write up a few notes and send in the quotes... What your broker is telling you to do is, do the work first then get CBA valuers to redo the valuation with the new work in place...hoping it give you a higher value...which is just a lazy and slack way around the CBA policy..... Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au If this is a custom build then I would expect the builder to set out the door frame closer to the wall to avoid the gap between architrave and the wall and or specify… 9 8289 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11893 I recently went through a similar renovation and move scenario when updating our family home. We also swapped some rooms around and tackled a major… 2 9872 |