Our Lawyers came back to us with some feedback on the contract. The two most concerning aspects we wanted changed were:

1/. The builder shouldn’t be able to take ownership of the property should we not be able to meet our payment on time.

2/. The final progress payment on the build was due to be much less than the value of the final portion of work. We wanted this final payment increased and earlier payments reduced to minimise our risk.

Thankfully, the builder agreed to these changes.

So they modified the contract, and they also included a few more fixed prices on the quote while they were at it, which is good on one hand. But on the other hand it increased the price of the contract by $28,000.

This triggered the bank to such an extent that they told us they were no longer able to lend us money for the build.

I am not one to panic too much as I do my best to have back up plans. So I calmly proceeded to tell the bank that if they don’t approve this loan then we will go elsewhere. We know that our debt to income and asset levels were healthy, and we would be able to find another bank to loan us the money we wanted.

Funnily enough, ANZ came back and said they have made some adjustments and are now able to loan us the money.

Nothing like a good threat to leave and take all your business elsewhere!

Of all the problems of a build, I didn’t think lending would be one, but there you have it. Hopefully not a sign of more issues to come, but that is my naivety showing again.

For now though we are back on track. Contract signed, mortgage confirmed, and builders have broken ground.

Until next time.