Sounds like your broker is not capable – make the switch sooner rather than suffer the consequences of more hits on the CRAA etc
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 Terry/Shahin, im waiting on my broker to give me a resolution strategy today before I go to someone else on this thread.
I just spoke with the builder and he suggested that he is happy to wait to take final payment until he completes the job and hands over 3 separate titles. Meaning that he puts a clause in the contract saying that the job wont be complete until the subdivision and individual titles are issued. Would this work at 95%?
Sash
It doesn't work that way – both the lender and in turn the valuer will go by how it is staged in the DA, i.e. construction first and then DA.
Does the building contract include everything? Did you remember to include things like demolition costs, site costs, fencing, retaining walls, driveway, etc? This all goes towards the construction costs.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
But if the titles have to be handed over prior to completion, why wouldnt it work if thats what the contract states?
Yes everything is included in the cost – turn key.
I will have to wait and see what my broker comes back to me with. Would you be able to get it across the line Shahin?
Because the council will not issue completion of the second stage (i.e. subdivision) if the first stage is not complete (i.e. the construction). This is how the lender will view this. This would definitely be unacceptable for the lender. I know what things can be pushed and negotiated when it comes to policy but this is not one of them.
Your broker would have done a lot of work thus far – if he is unable to assist then I will look at the application.
PS – the final payment of the progress schedule is generally the smallest amount.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
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