Browse Forums Home Finance 1 Dec 11, 2019 8:20 am Hi there, if the bank will finance the 80% of the build then on contract signing with the builder you need to pay 5% deposit. What happens with the other 15% - do you also pay this to the builder nearing completion or to the bank? Re: Construction Loan and Deposit to Builder 2Dec 11, 2019 9:39 am The bank will usually require you to contribute your equity first, before they pay. So you would most likely have to contribute to the next stage payment - if that's more than the rest of the 15% equity, then the bank will pay the rest. Re: Construction Loan and Deposit to Builder 3Dec 11, 2019 10:42 am dga The bank will usually require you to contribute your equity first, before they pay. So you would most likely have to contribute to the next stage payment - if that's more than the rest of the 15% equity, then the bank will pay the rest. Ok great, thanks for the information. 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 How are you doing Ben? Extremely interested in hearing what you are doing or plan to do! 12 15156 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4821 |