We are currently in the middle of a new build and have a construction loan with CBA. We have some items that have been listed as out of contract and have previously received quotes and included as part of our contributions.
CBA required us to pay our entire contribution before they would make progress payments, which means we contributed the full quoted amount of the out of contract item. Fast forward to today and the invoice has come in at $8,000 less than quoted as we made some smarted choices.
My question is: can we retrieve this excess we have contributed as we would like to use it rather than reduce the loan amount that we signed for with CBA. Is this possible?
I have asked the bank, however our lender is on leave at the moment.
Thanks.
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Browse Forums Home Finance Re: CBA construction loan - out of contract items 2Nov 02, 2022 1:45 pm Hello - not knowing your personal circumstances I can't give you specific advice, but, for my clients when this happens once they've sent in the final payment we get them to write to the bank and ask for the rest of the money to be put in their account. Providing the items are all there (regardless you made more economic choices) the bank should release the funds. Happy moving day! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building  21 Dec 2011 8 NSW Junior Member Re: CBA construction loan - out of contract items 3Nov 02, 2022 2:44 pm  becjarrettdaltonHello - not knowing your personal circumstances I can't give you specific advice, but, for my clients when this happens once they've sent in the final payment we get them to write to the bank and ask for the rest of the money to be put in their account. Providing the items are all there (regardless you made more economic choices) the bank should release the funds. Happy moving day! Thanks so much Rebecca - I was hoping this would be the case but will wait for the bank for the final word. Thanks again for the fast response. 18 Jan 2021 1,266 NSW Gold Member Re: CBA construction loan - out of contract items 4Nov 03, 2022 12:54 pm Surplus funds are credited to your acc post final payment to the builder generally. However I'm not familiar about your contribution process for out of contract items. Did you pay these to the trades or did you pay the contributions to the bank? Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. 21 Dec 2011 8 NSW Junior Member Re: CBA construction loan - out of contract items 5Nov 03, 2022 1:09 pm Hi Noname, Yes we paid the contributions to the bank and then they would pay trades from that. I received confirmation that the bank will reimburse funds at completion of the build, however it could be an issue if it isnt like-for-like for materials (i.e. if we picked lower value materials to save money, affecting valuation). Hope this helps someone in the future too! How to calculate provision sum and margin? We are nearing completion and have received the final invoice which includes unexpected expenses for provisioned items. The… 0 14194 The significant date is when receive final payment invoice Check that section of contract Bit of fluff by builders prior to that 1 26591 4 9688 |
