During the build there will be a number of progress payments to be made. These can be drawn down from your loan fund, managed by DPN on your behalf with your authority via email at each stage or you can choose to make these payments directly yourself.
- Deposit - 5%
- Base stage - 20%
- Frame stage - 25%
- Enclosed / lock up stage - 20%
- Fixing stage - 20%
- Completion - 10%
Please note, this is a guide only, your Building Contract will outline the exact Payment Schedule.
The builder will send DPN an invoice and we will co-ordinate payment approval from you. Once the deposit invoice is paid, a soil test and preparation of plans is lodged with the local Council. Importantly, the sooner the builder can start construction following land settlement it minimises the time to build and also the interest payable on the land.
Making progress payments
We'll follow up with your lender to ensure payments have been made, and with the builder to ensure receipt, advising you accordingly. We will send you an email with the ‘completion advice’ outlining the final steps you’ll need to take prior to final payment. Once the final invoice is issued, the bank will request a final valuation to be ordered and we will ensure this is completed.
You will need to authorise progress payments within 48 hours of notification or pay directly as previously arranged.
When do I start paying my loan?
Your deposit for the land component is typically 10%, however this can vary. Some builders request the 5% deposit at the time of land exchange and others request it just prior to commencing construction.
When the land has settled, you will begin to make payments on this amount, while the payments for the building component commence with the first progress payment and increases as each stage payment is drawn down.