We have approval to build our house through the ANZ and we are about to sign up with a builder.
The builder is saying as soon as the contract is signed that they need a deposit to get the ball rolling eg Builders Indemnity Insurance etc for the council to approve it and the broker is saying don't give them any money until the loan comes through and then pay the deposit.
it's is all very confusing and would like to know if there is any 'standard practise'?
Any information would be greatly appreciated.
A client of mine paid the deposit and then his finance wasn't approved. I would wait rather than risk it. Don't sign with the builder until the bank approves it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thanks Terryw the loan has been approved and the contracts signed and the builders want a deposit withint 10 days. i'm not sure how long it takes the bank to give you the loan. Is it 14 days or 30 days. i don't seem to be able to get an answer from the broker.
It can take around 3 weeks to get the actual cash as the bank has to send you documents, you sign, send back, and then settlement booked in etc. maybe 2 weeks
And did you realise that with building loans the person has to chip in their bit before the bank starts releasing funds. eg. if you have borrowed 90%, then you must pay the first 10% and then the bank starts paying.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
We have borrowed the whole amount against land value. Just wondering how long until we get the money back (as such).
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