Hi all,
For those about to enter into a construction loan, just letting you know that Westpac will only accept 5 progress payments from your builder. Plus the breakdown must be no more than 20% paid prior to base (this also includes previous deposits), no less than 10% at the final payment, any claim in between no greater than 35% and no more than 5 claims made in total.
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My builders schedule of payments are 10, but Westpac will only accept 5, no more, no less. The builder did the right thing and reduced this to 6 but Westpac would not budge and I was forced to apply for a personal loan for one of the payments.
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I sent the proposed schedule of payments to Westpac 6 months ago, but nothing was mentioned. I own most of the land we are building on and have been long a term customer with Westpac. Still no joy.
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Anyway, this is causing untold stress and just wanted to let others know so you can be better informed if obtaining a construction loan with Westpac.
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Boppa