12 Weeks after Settlement – CDC Approved and Construction Loan Nightmares

So much happening all at the same time over the last 6 weeks, it’s hard to know where to start

First up I quit my job which I really don’t recommend doing in the middle of a building loan application.  We were almost at the end of our loan application with our bank, had a conditional approval and our elements of the conditional approval (such as employment verification) were done.  An opportunity came up for a really similar job in a much larger company and after 7 years and being under a lot of stress in my job at the time I jumped at it.  I knew it was a risk but it was one I saw a very necessary risk to take.  No sooner than my notice was given our bank (Heritage Bank) started to complain about the progress payments from our builder (which are similar to almost every project builder in NSW).  To say I was annoyed was an understatement because we had given this information to them in early October but no-one at the bank read the documents properly.

This went back and forth for a few weeks between the bank, our broker and our customer service rep at the builder to no avail.  The bank wouldn’t budge, Wisdom offered some alternate options but nothing appeased them.  Meanwhile I was just getting frustrated that it was clear there was going to be no positive resolution and we were just wasting time while my notice period evaporated.

While all this was going on, our plans were taking forever to be approved by a private certifier for CDC.  Concerns I had back in August about changes to CDC requirements came up as they weren’t clearly addressed on our plans.  All up our plans took a month to be approved by the certifier after them requesting extra information from our BAL certifier and a revision of the plans to address the new CDC requirements.  Given that everything has taken longer than the estimated time frames and the issues with the bank I wasn’t sweating it over this.  Our plans were submitted on 13th October as best I could tell from emails and we got the approval email directly from the certifier on 13th November.

So we arrived at a point where I was in between jobs (I desperately needed a bit of time off to reset before my new job started), our bank wouldn’t approve the progress payments and our plans were approved.  This is the point where we’re meant to provide our completed loan paperwork to move on to the final admin stage 😦  Wisdom confirmed we were now outside the window for a 2017 construction start too which was actually a minor relief knowing that we just needed to forge ahead with dealing with the loan situation.

So much of my time off has been soaked up with conversations with our broker and 2 further loan applications.  I spoke to other people building with Wisdom to find some banks that would deal with the progress payments and we spent days putting together a loan application for Bankwest only for them to say “no way” with me starting a new job.  Despite being in a very similar role, same industry and same money, the probation period made me too high risk.  Our broker was great, talking with other banks after that until we landed with CBA who said they had no issue with me starting a new job as long as I could provide evidence.  Now we play the waiting game while our loan is assessed and they work with Heritage to refinance our land loan at the same time.

Despite all this, Wisdom are incredibly trusting and still forging ahead despite the lack of a loan approval (presumably the fact that we were stuck only on progress payments with our first bank means we seem like a sure bet still).  So this week we have signed off our final colours selection where I had a slight moment of doubt over our external colour scheme but decided to stick with it.

We also received our draft end panel which I will write about in more detail in its own post.



2 thoughts on “12 Weeks after Settlement – CDC Approved and Construction Loan Nightmares

  1. Hi Jennifer,

    We are considering building with wisdom. Would be great if you can let us know who your sales consultant is, if he/she has been great to deal with.




    1. Our sales consultant was Scott at the Willowdale office. He was excellent, he was always responsive to emails and calls. Your Sales Consultant is your sole point of contact with Wisdom until you sign your contract so you do the majority of your back and forth on tender and plan changes through them and I think it’s important that it is someone you’re comfortable with.


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