Hi everyone,
We are about to build our first home. Unconditional preapprove for the home loan done. 20% deposit at hand. Still awaiting land to title. And now receive progress letter and forms to complete.
Builder contact us that bank confirm approval for 80% construction cost and builder want to see the other 20%. My question is,is this 20% part of the home loan deposit that we put in for loan? Is this the same as customer contribution towards construction or is it a cost on top of our 20% deposit for hone loan?
Any help to make this clear for us is much appreciated.
Cheers.
It is one and the same. The 20% is used towards your purchase, those funds are generally disbursed in the first progress payment (the slab pour). This contribution can include if there’s any FHOG etc.
After the funds are paid out to the builder, the remaining funds owed is paid by the lender on your behalf at each progress payment.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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