Browse Forums Home Finance 1 Mar 04, 2016 7:55 pm Say you want to borrow $400,000 to build. Do any banks just deposit that sum into your bank account and give you total control or must they pay all the bills and if you spend less too bad, thats all you get so any extra work you want to do has to be paid for our of your own funds? Re: Do Any Banks Pay Lump Sums? 2Mar 04, 2016 8:25 pm We provided our broker with quotes for the "extra stuff" on top of the build contract (turf, blinds, fencing etc ) and this was factored into our approval amount. The bank pays the progress payments to the builder as invoiced then any extra surplus is deposited into our account after handover, or as invoices are delivered e.g. Fencing contractor invoice Re: Do Any Banks Pay Lump Sums? 3Mar 04, 2016 8:36 pm kingsolutions We provided our broker with quotes for the "extra stuff" on top of the build contract (turf, blinds, fencing etc ) and this was factored into our approval amount. The bank pays the progress payments to the builder as invoiced then any extra surplus is deposited into our account after handover, or as invoices are delivered e.g. Fencing contractor invoice Hi kingsolutions Are the extra stuff limited to certain things? Can cooling and solar be some of those extra costs factored into loan? viewtopic.php?t=79203 Re: Do Any Banks Pay Lump Sums? 4Mar 04, 2016 8:46 pm They were both included in our build contract but I can't see why not. I think it comes down to the valuation the bank gives the land combined with the design and features of the house being built. As long as you stay under the LVR then you should be ok. Chat to a broker if you haven't already, we found a really good one who answered all of our 1st time questions too Re: Do Any Banks Pay Lump Sums? 5Mar 04, 2016 8:48 pm Yes, we are having cooling and Solar added to ours Re: Do Any Banks Pay Lump Sums? 6Mar 07, 2016 12:37 am 1st-timers Say you want to borrow $400,000 to build. Do any banks just deposit that sum into your bank account and give you total control or must they pay all the bills and if you spend less too bad, thats all you get so any extra work you want to do has to be paid for our of your own funds? The bank will draw down the loan progressively in stages to the builder. The reason being the bank wants to make sure that construction is actually happening. Last thing they need is to give the full amount to the client who then goes and puts it all on black at the casino, and the bank is left with an undervalued piece of property if the client defaults. There is one way of borrowing the full amount though. You can take it all in one hit as an equity release against another property you own if there is enough equity in it. Then you can basically control it how you want. Cheers Tom Re: Do Any Banks Pay Lump Sums? 7Jul 06, 2016 4:13 pm The bank will lend the $$$ as per the builders contract fixtures and fittings. If you want the platinum taps and gold drains and its not in the builders contract, dont expect the bank to pay extra for that. But as PLC said, if you have equity dipped as CASH from another property, well you can do what you please, and yes as Wesley Snipes says "always bet on black" Personally I've found the platinum taps to wear out after a while of use, best to stick with diamond fittings. Much better for everyday use. Hi Mofflepop, I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out… 9 20354 A question. Im in Queensland and building a new home. We managed to reach practical completion 6 weeks ago but we haven't heard any date for handover yet. Who should we… 0 5800 i had the my concreters concrete right up to the fence. I have pits all along my path, so the water tends to drain away from the house and into the pits. There's only one… 7 12718 |