Browse Forums General Discussion 1 Feb 28, 2022 4:59 pm In short, Westpac now isn't happy with the current progress payment: Deposit: 10% Base: 15% Frame: 20% LockUp: 35% Fixing: 15% Completion: 5% And the builder isn't willing to change it either. Now I don't know what to do, basically all banks ask for 10% min of Completion. And the builder said others all have got the loan with the current payment schedule. Anyone could give some advice??kinda urgent Re: Need help on bank loan and progress payment 2Feb 28, 2022 5:07 pm those seem heavily front loaded. if your bank is a sure go on finance - ie this is the only thing holding it up, put it to your builder that he can either tow the bank's line or not get the job. Its that simple. Money or no money. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Need help on bank loan and progress payment 3Feb 28, 2022 5:44 pm Noname those seem heavily front loaded. if your bank is a sure go on finance - ie this is the only thing holding it up, put it to your builder that he can either tow the bank's line or not get the job. Its that simple. Money or no money. Thank you for the reply! The thing is mine is affordable housing directly from the gov, the builder is nominated by land agency, which means I can't switch to another builder. The money will be gone to the builder's pocket sooner or later no doubt. But quite a hard time for me to get the loan now... Re: Need help on bank loan and progress payment 4Mar 01, 2022 7:44 am sorry cant help you there mate. Know zero about govt based affordable housing and how loans work for it, but it is possible the bank may have different lending rules/criteria on non standard arrangements like this one. Perhaps have a chat to them and find out if that's the case. If it is, then your builder may benefit from extra context why the bank approved other loans with this schedule but not yours. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Need help on bank loan and progress payment 5Mar 01, 2022 9:11 am justsayoh In short, Westpac now isn't happy with the current progress payment: Deposit: 10% Base: 15% Frame: 20% LockUp: 35% Fixing: 15% Completion: 5% And the builder isn't willing to change it either. Now I don't know what to do, basically all banks ask for 10% min of Completion. And the builder said others all have got the loan with the current payment schedule. Anyone could give some advice??kinda urgent Bank must have done the valuation report and with your progress payment schedule, the valuer would comments on it as front loaded and does not meet industry standard. By lock up stage, your build already claimed 80% of the entire building cost, it poses too much risk to the bank. Without changing the payment schedule, you will find other banks will do the same. Try and ask the builder to claim 70% by lock up stage. Good Luck. How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 12405 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 20123 8 6525 |