Browse Forums Home Finance 1 Oct 22, 2014 12:28 pm We are approaching handover in a couple of months, and starting to organise the trades to finish off floors and landscaping etc. In our loan application, we added quite a few quotes for this work, which were approved. We are now looking to change some of these things which will save us some money - EG: Tiled floors instead of timber, installing our own fencing (with help from tradie mates) instead of paying the fencing companies etc. 3 questions: 1. Will changing from timber floors to tiles be an issue for the bank, since they approved the timber flooring quote? 2. At the end of the build, will the bank give us any surplus funds up to the amount that was approved, or is this an issue? (I'm not seeing how they can "keep" the money, but they don't seem to be able to give me an answer. They just talk about "paying invoices or reimbursements", not what happens to the money left over when all invoices are paid). 3. Do we need to do everything that was applied for? We are thinking about not putting in solar panels for a year or so, but have $5000 allocated to do it as part of the build. We would be using the surplus money to "reimburse ourselves" for the costs we've already paid out - $20 000 demolition etc - as well as for gardens etc that were not included in the finance….. not to go on holidays etc. My Building Thread https://forum.homeone.com.au/viewtopic.php?f=31&t=66087 Re: Const. loan - surplus funds question 2Nov 10, 2014 6:52 pm Hi Darcy, You may have already had this sorted! No straight forward answer, depends on the lender and the loan amount as a percentage of the value of the home - however: 1 - as long as the floor coverings are of the same standard that should be ok - timber and tile are similar in value to anyone who might be buying from you in future (which is where the banks come from) 2 - If the final valuation comes up ok and there's a surplus they'll generally let you access it after everything is finished. I have seen lenders release all of the construction funds so you can move in but hold back the finishing items (carpets in this case) and then hand the money over when they got photos and a receipt confirming the floors were in. 3 - this is the trickiest one, depends if any value was added for the solar panels. If the valuation comes up ok without them you should be fine. Good luck - are you in now? Love the new home feel! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Const. loan - surplus funds question 3Nov 10, 2014 9:45 pm Thanks for the response….. our lender has said that we need to provide photographic evidence / invoices etc to prove that all the budget items are completed. Once this is done, they will release the remaining funds to us. So it's all good. Still a long way from moving in. Only just got to lock-up last week. Lots of delays and frustrations, as per so many builds. But we are getting there, and I am planning my lists and budget for things to do when it's all finally done! Thanks again. My Building Thread https://forum.homeone.com.au/viewtopic.php?f=31&t=66087 Re: Const. loan - surplus funds question 4Nov 10, 2014 9:47 pm Ahhh the slowest bit too, here's to speedy completion in time for Christmas?! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Const. loan - surplus funds question 5Nov 10, 2014 9:49 pm No - was meant to be this week, but they are now saying Mid-January. So I'm expecting it to be later in February!!! It's hard at the pointy end - almost whole mortgage paid out, and $3000 month in rent as well. Ouch. Sooner rather than later will be better! My Building Thread https://forum.homeone.com.au/viewtopic.php?f=31&t=66087 Re: Const. loan - surplus funds question 6Nov 10, 2014 9:52 pm That does hurt, that's a long delay. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building 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 19097 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 35326 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11916 |