strata titled unit cannot be considered as construction loan

Hi Guys,

Have seen a few of you with great input on queries from others, so thought this may be a good place to start.

Bit of an odd one.

I have a build contract for a strata titled unit. It is a bit different in the sense, it is a two level unit with no other floors for other titles, just has shared driveways etc.

Now, the bank (ANZ) has given approval however they are treating it as off the plan and hence the progress payment schedule would not be adhered to. They would only be able to fund the purchase on completion.

For this to work, we would need the bank to treat this as a normal construction loan. Otherwise we would need the builder to take a 10% deposit and then complete construction on their own back. Whether or not they are able and willing to do this, I do not know.

I will call the bank to discuss however just interested to hear thoughts on the forums.

Cheers,