3_Guide to an Authority to Commence Construction_Factsheet 3_

Step 3Guide to anAuthority toCommenceConstruction

Your guideto an Authority toCommence ConstructionBefore your lender can start advancing funds When your lender receives your ACC Pack, they’llfor your progress payments, you’ll need to review all the documentation and advise that your loanobtain an Authority to Commence Construction is ready to be settled. This means that they’ll be in aletter (sometimes referred to as an ACC or position to advance funds for your progress payments.Commencement Letter). Don’t forget that any money you are required to contribute toward your new home has to be paid toAs soon as we’re ready to start construction, us before any money being obtained from your lender.we’ll send you a Final Consolidation and Reconciliation.This will include your final plans and consolidated Please forward a copy of your ACC to your Financetender (this includes all variations and is the final Consultant as soon as your lender notifies you.contract price). Once we receive a signed copy of yourFinal Consolidation and Reconciliation, we can start Don’t forget that our Finance Managers deal withbuilding your new home, so the quicker you get it back construction loans every day and have access to someto us, the sooner you can move in. great deals from a number lenders, so they are more than happy to save you the hassle of dealing directlyOnce we’ve received that, we’ll issue you with an with your lender and organise all facets of your loanACC Pack which includes the above signed for you.documents, along with our builder’s licence andinsurance details. Your lender will require this ACC As added peace of mind, if you do choose to use onePack and your signed Mortgage Documents in order to of our Finance Managers to arrange your loan, youprovide an Authority to Commence Construction letter. will not be charged interest on any overdue progress payments. Conditions apply, so please ask one of ourBecause it can take your lender up to two weeks to Finance Managers for more details.process your ACC, we strongly advise you to signand return your Mortgage Documents as soon as youcan and to forward your ACC Pack as soon as youreceive it from us. Please note that your first progresspayment will be due three to four weeks after wecommence building and any late payments may besubject to interest.

If you haven’t completed a loan application or if youdon’t have a Formal Loan Approval in placePlease note: If your Building Approval has been received,you will now be potentially delaying the commencement ofyour new home. As a result, you may be subject to a priceincrease if you are beyond your Tender Expiry Date.You will need to: If you would like our Finance Manager to arrange your finance1. Make an appointment to see your bank manager or broker You will need to:2. Collect all the required paperwork 1. Complete a loan application3. Complete your loan application 2. Collect all your required paperwork 3. S ign and return your Mortgage4. Send the Bank Pack to your bank or broker with signed contract Documents when you receive them5. Follow up the receipt of the Bank Pack with your bank or broker 4. S ign and return your Final6. Follow up the Formal Loan Approval from your bank or broker Consolidation and Reconciliation to your Customer Service Consultant7. Send a copy of the Formal Loan Approval to your Finance Consultant as soon Then relax… we will take care as possible to avoid any delays in the commencement of your new home of the rest8. Follow up the Mortgage Documents from your bank or broker OR9. Sign and return the Mortgage Documents to your bank or broker as soon as possible to avoid any delays in the payment of your first progress payment10. Sign and return your Final Consolidation and Reconciliation to your Customer Service Consultant11. Send a copy of your ACC Pack to your lender or broker as soon as you receive it to avoid any delays in the payment of your first progress payment12. Follow up the receipt of the ACC Pack with your bank or broker13. Follow up the ACC with your bank or broker14. Send your Authority to Commence Construction to your Finance Consultant as soon as you receive it from your bank or broker to avoid any delays in the payment of your first progress payment15. Confirm settlement with your bank or brokerIf you have a Formal Loan ApprovalYou will need to:1. Sign and return the Mortgage Documents to your bank or broker as soon as possible to avoid any delays in the payment of your first Progress Payment2. Sign and return your Final Consolidation and Reconciliation to your Customer Service Consultant3. Send a copy of your ACC Pack to your lender or broker as soon as you receive it to avoid any delays in the payment of your first progress payment4. Follow up the receipt of the ACC Pack with your bank or broker5. Follow up the Authority to Commence Construction with your bank or broker6. Send your Authority to Commence Construction to your Finance Consultant as soon as you receive it from your bank or broker to avoid any delays in the payment of your first progress paymentIf our Finance Managerhas arranged your financeYou will need to:1. Sign and return the Mortgage Documents to your Finance Consultant as soon as possible to avoid any delays in the payment of your first progress payment2. Sign and return your Final Consolidation and Reconciliation to your Customer Service Consultant

NotesLet us take the hassle out of arrangingfinance for your brand-new home,contact:Greg Woolley Rebecca KuschertConstruction Finance Manager Customer Finance Consultant21 Solent Circuit Baulkham Hills NSW 2153 21 Solent Circuit Baulkham Hills NSW 2153T: (02) 8851 5416 T: (02) 8851 5310M: 0413 103 015 E: [email protected]: [email protected] 63 93Clarendon.com.au