Browse Forums Home Finance Re: Home Loan Balance 2Feb 19, 2010 8:33 am Bank will transfer it to your account and then you see fit with what you do with it... ie we put most of ours back on the mortgage being that it was 32k we had left over! 2nd build here we come in Whittlesea! https://forum.homeone.com.au/viewtopic.php?f=31&t=92617 1st Build - Henley - Cooper in Doreen! (2009) https://forum.homeone.com.au/viewtopic.php?f=31&t=17354 Re: Home Loan Balance 4Feb 19, 2010 9:33 am Mic Tan Hi all, quick question for everyone. We have approved loan of $300k. If after all the progress payments to the builder, let say we still have the balance of 10k. What's happen to this money? Will the bank transfer it to us? Thanks! It depends on the type of loan, they may say your can borrow up to $300k but they will still only lend you a percentage of what your land and building contract value at. I hope that makes sense for instance if your land is valued at $100k and your building contract is $150k they will not pop the extra $50k in your bank Re: Home Loan Balance 5Feb 19, 2010 10:15 am I think its best that you check with your bank. Our bank said that they would only release funds to me if I had evidence that I had paid for something first and then sought reimbursement from the builder. They only released funds for the actual house itself... they wouldn't release it for things like furniture. Re: Home Loan Balance 6Feb 19, 2010 11:28 am I was asking my loan manager the same thing, this is what I got back. She basically said, Once the construction is completed and the final payment is made, any surplus funds not being used will be credited to your Bank a/c. On ours there will be a good 10k left over, but we'll be putting that back into the loan anyway. (You pay a lot of interest to pay the first 10k of your homeloan.) ---------------------------------------- Building the PD Lisbon 24 http://www.porterdavis.com.au/#homeviewer/lisbon/24 Blog of our progress. http://lisbon24.blogspot.com/ Homeone build thread https://forum.homeone.com.au/viewtopic.php?f=31&t=28665 Re: Home Loan Balance 7Feb 19, 2010 12:51 pm Or... you could make sure on your new loan you have a redraw facility set up - put the money in the bank against your loan - save on interest But.... if down the track you need to access money for emergencies or other expenses - you have it readily available to you. Just make sure if you do decide to set up a redraw facility that there are no charges applied to it Re: Home Loan Balance 8Feb 19, 2010 2:14 pm We had a loan approved for a certain amount and we could access that for anything to do with the build, not just the progress payments - if I remember rightly we had to sign a stat dec that said all money other than directly to the builder was for structural items - we paid air con installer directly and paid for roller shutters for example - but I dont think items like furniture or soft furnishings would be allowed (in other words only things which would be sold with the house were it to be repossessed ) We didnt end up using all our loan money and so we just didnt with-draw that last amount - after the house was handed over we reverted to new loan contract for standard interest and principal (only had to cover interest during build). Obviously the fact that we didnt withdraw full amount of building loan meant new loan was for smaller amount. We then sold our old house and after settlement of that (about a month after handover of new house) we put most of that onto mortgage too - keeping back what we needed for additional post handover things like blinds, shed, pergola, landscaping etc. Re: Home Loan Balance 9Feb 22, 2010 12:53 pm mdzzj It depends on the type of loan, they may say your can borrow up to $300k but they will still only lend you a percentage of what your land and building contract value at. I hope that makes sense for instance if your land is valued at $100k and your building contract is $150k they will not pop the extra $50k in your bank Excellent answer mdzzj, if I may say so. Re: Home Loan Balance 10Mar 30, 2010 10:24 pm So what happens if, our loan was approved for $400k which includes the costs for airconditioning ($10k). If we then decide to pay the ac installer by cash upon completion, what happens to the $10k of un-used loan? Will our final loan be adjusted to $390k? or will the bank pop the $10k into out account and leave the final loan amount unchanged at $400k? 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 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 20025 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 36517 |