Browse Forums Home Finance 1 Feb 05, 2022 10:22 pm Hi I'm new here and especially to home finance, so please be gentle with me Research seems to suggest that banks typically offer bridging loans for 6 to 12 months only, but with the current state of supply chain issues, workforce shortages etc., this seems like a huge risk - new builds appear to regularly take longer than this in the wonderful pandemic world we're in right now. My question is, is it possible to protect ourselves from this scenario at all? Could it be written into the build contract somehow? Could it be a clause in the bridging contract with the bank? Can we insure against it? Advice is very much appreciated. Michael Re: Bridging loan - protection from supply chain delays? 2Feb 21, 2022 12:21 pm Hey Michael, Welcome to the Homeone forum & home finance in general Without seeing the rest of the scenario, it is tough to provide the right advice so Judging from your information thus far, I'm assuming you are looking to sell your property to complete the funds and are hoping to transition to a new build home whilst settling the sale of your property and you are concerned with the potential delays from building completion. It may be tough to amend or add such a condition via the build contract(speak to a conveyancer or property lawyer about further information on this area). If there are expected delays, depending on the banks acceptance, it would need to be communicated across to the lender on the delays where an extension would need to be sought. During this time, the accumulation on interest will need to be taken into account(existing bridging) ----------------------------------------- Justin Marques Accredited Mortgage Broker ________ SpeC Finance Mortgage Broker https://www.specfinance.com.au/ https://www.specfinance.com.au/construction-loans The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19825 Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 82208 In fairness nobody gave a crap about the ACCC and the gag clauses continued in the pro forma templates of a few other builders after the ACCC took on Wisdom, and more… 19 74597 |