For most people, they borrow the full amount for their block of land and their new home. This means after settlement, you’ll start making repayments on your block of land. However, you should expect that your repayments will increase incrementally as your building loan is drawn down by the builder. What If I’m paying for some of the Build, And the Banks Paying the Rest? Let’s say you are wanting to build a new home for $500,000 and have $200,000 in your bank account and you have a bank loan approved for $350,000. You’re planning on using $50,000 of your money at the end of the build, to pay for some finishing items and to purchase some new furniture. Who pays what and when? The banks will all require you to pay your portion of the bill first, and they will take care of the rest. That means you’ll be expected to pay $150,000 before the bank releases a cent. It’s not how most clients want it done, but the banks generally do this to ensure that money isn’t spent before the building is completed, which is fair enough. However, this means you should be prepared in advance. If you have funds in fixed term deposits, you’ll need to make sure you’re able to get those funds out when we issue you with your progress claim, if you can’t, we as the builder are entitled to stop work and also charge you late fees on your payment, but we hope that we never get to this point…. So be prepared! We hope this has cleared up some of your questions relating to progress claims and payment schedules. For the most part, just be aware that the banks will release your funds in accordance with your contract, and your repayment amounts will increase as they release more and more money.