Wednesday, June 22, 2011


OK so I've heard a lot of warning and people experiences about the stress and grieve that house building experience can cause to someone.  Mainly they are experiences related to builders not being responsive, they take too long to provide the final construction drawing, contract not being drawn up properly, site supervisor gone AWOL or even someone dump land fill on their block of land preventing them from going to construction.

Yea yea I've heard all of that.  But with my building experience stress and grieve, my builders hasn't done anything that stress me out as yet.  In fact the organization or institution that stressing me out is THE BANK!  Just a conspiracy theory here but I think they have read my blog about them and they decided to make everything difficult for me...

What happened?

I've made my first claim for base with the bank and that went through just fine.  We even got a text message on the phone saying that they have paid the base claim.

It is not until the second claim which is the frame claim that again we are given the run around.  When I first talk to their mortgage servicing hotline, they said that they don't know what was going on and they needed to further investigate the issue.  I was confused that they didn't know because it was them that asked me to ring them in the first place!

So finally after two hours of waiting, someone rang me back saying that perhaps there was a mistake in our paper work and we don't have enough fund in our account to complete the construction.  Say what?!? Are you serious?! How is it possible that we didn't have enough loan to cover the construction cost when we specifically applied 80% of the amount on the tender that Metricon sent, which I forwarded upon my application?!?!

Again, as usual, they just direct you to the broker who originated the application.  However the broker just quickly said that it was the bank fault and the paper work is fine.  Now I don't know who to believe and I don't really want to know either.  The bank said this loan was originated from the broker and only the broker can do something about it, so please just fix the issue.

After three days of running around and being stuffed around and talking to a number of people on the mortgage servicing hotline and they all gave me different explanations and stories which confuse the hell out of me, the bank finally said that the loan was fine and it is only that this claim that we had the shortfall as we need to contribute our 20% first.  The rest of the progress payment stages should be fine.  The broker was still adamant that we should be able to claim the payment but then so very quickly changed her story to that of the bank.  She also failed to notify me that the bank used only our first progress payment schedule as a base for the property value.

So if we just need to honor the contract, which we don't even know what they wrote in there and there is no specific clause that we needed to contribute our 20% deposit first (I checked twice), why they didn't explain that in the first place and we would have been happy to just pay that 20%.  Why keep telling us that our loan is not enough to complete the construction?!

Seriously, both bank and the broker are a total failure!

The only reason why I went with the bank was because they were the only bank that can give me enough loan to cover our construction cost and the value report were high.  Other banks are generally lower but if this is to be the grieve that I have to have, I should have used another bank instead.

But I don't think I can recommend my broker in this case.  She is probably ok for you to purchase a ready to move in mortgage but construction loan? Better stay clear out of it.


Karla said...

Oh dear :( I think I've said it before but your Broker really is a dud!

Due to a couple of extra expenses that were added after our original loan application was submitted, we've had to contribute a little each progress payment. Our original portion of deposit also wasn't required until the 2nd progress payment but in each instance my Broker explained in detail what was required and why.

Seriously, you shouldn't have to be contacting the bank - at all.

Sorry you're still getting the run around.

Thigee said...

Yoppie, I know how you feel, I see it and hear it everyday cause I work for a bank. Really after the first progress payment, you are now the bank's customer and THEY should be doing everything to assist you. Normally any contribution you are making towards construction is requested when the first progress payment is paid. Thereafter, the bank uses the approved loan funds to pay all the other payments. What a pity that you have to go through so much of stress. Lets hope things get better from here onwards.

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