Based on the lender’s requirements, before a loan for a construction project can be approved, an ‘as if complete’ valuation of the land and proposed building/renovation must be provided to ensure the loan amount is realistic. The quoted cost of construction must be verified through plans, specifications, and a signed fixed-price contract that meets industry standards. Additionally, the project must be insured with Builder’s All Risk Insurance, Domestic/Home Warranty insurance (if a registered builder is used), and Public Liability Insurance to cover any potential risks during construction. Furthermore, building plans must be approved and a relevant building permit issued before the loan can be considered.
The BICA Platform can assist in obtaining permits, insurances, contracts to ensure the requirements are met and be viewed on a centralised platform.