Hi Guys,
I'll start with a bit of information to try and fully explain my odd situation and see if anyone can give me some advice..
I applied and was approved for a land and construction loan. Passed all the genuine savings tests and had paid deposits etc.
The construction loan was conditonally approved on the condition that the land loan was settled first and on the condition of a valuation.
I now have been through settlement on the land, paid the full stamp duty (50% to be refunded when construction starts FHB).
Valuation has been completed and come back higher than what I needed (rare - but good outcome).
I have paid the builders deposit, and am at the stage of needing unconditional approval on my construction loan to begin.
Now for the tricky part - The bank requires proof of genuine savings (AGAIN) in order to fund the construction loan, and they need proof of genuine savings to 5% of the entire cost (land and construction) even though I have already passed these tests and had the land loan funded perviously.
During settlement my conveyancer had me pay the full amount of stamp duty reassuring me it would be refunded at the first draw down of construction. This full stamp duty payment dropped my savings below what the bank deems necessary to evidence genuine savings for about 3 weeks (savings are now well over what is needed) so now they are telling me I have to wait 3 months to prove genuine savings to get my construction loan unconditionally approved.
After all that, my question is, WHY do I need to prove genuine savings when I have already done it in the beginning? I have a stamp duty refund coming, the FHOG, and well above the needed amount in my offset account. Is there any other way of fast tracking this so I don't have to wait another 3 months and end up waiting the xmas period during construction.
Also I'll be paying the repayments on the land loan monthly which is basically throwing away money because its interest only during construction.