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Old 23.11.2015, 11:34
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Re-negotiating a building loan once signed

With the construction of our house about to start, it seems the "plus values"*, i.e. extra costs, for the build are going to be more than we anticipated. Considering we are financing 28% of the build using our own funds, what are our chances of re-negotiating the mortgage to include these extra costs (probably to the tune of 10 - 15k)? My concern is that seeing as we have signed the mortgage contract, to re-negotiate it would be seen as breaking it and we would be liable for charges. Having said that, the loan period hasn't started yet (first payment due once excavation starts), so I think it still might be a possibility. We are with the Raiffeisen and have written to them and are awaiting a response. In the meantime, I thought I'd see if anyone has any mileage in this matter and what information we can possibly arm ourselves with before meeting with our advisor.


*"plus values" are such things as over budget flooring costs, electric blinds, extra electric sockets, tiled basement, wired ethernet, mosquito blinds etc.
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Last edited by PaddyG; 23.11.2015 at 12:37. Reason: Title edited as requested, thank you
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Old 23.11.2015, 12:00
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Re: Re-negotiating a buildin loan once signed

Sorry I can't help with the renegotiation question.
Our bank advisor suggested adding a bit extra onto the loan before we signed to allow for those kind of extras. We did that and and came in slightly under the total amount so I think it was a good decision.

We were pretty lucky with our build I think, based on the posts I've read on here, and got no nasty surprises along the way. Our builder seemed to set realistic budgets for things like flooring, tiles, kitchens and bathrooms unlike some other people I've spoken to where the budgets were pathetically low so it was impossible not to incur extra costs.
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Old 23.11.2015, 12:06
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Re: Re-negotiating a buildin loan once signed

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Sorry I can't help with the renegotiation question.
Our bank advisor suggested adding a bit extra onto the loan before we signed to allow for those kind of extras. We did that and and came in slightly under the total amount so I think it was a good decision.

We were pretty lucky with our build I think, based on the posts I've read on here, and got no nasty surprises along the way. Our builder seemed to set realistic budgets for things like flooring, tiles, kitchens and bathrooms unlike some other people I've spoken to where the budgets were pathetically low so it was impossible not to incur extra costs.
We did that too, but it obviously wasn't enough . The budgets for the flooring, kitchen, bathrooms etc are actually quite generous, but it's the rest, the "wants" rather than the "needs", that are upping the cost. I just wish we'd been a bit more clued up on that aspect and had made further enquiries before signing. Oh well, retrospect is a wonderful thing, is it not?
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Old 23.11.2015, 12:08
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Re: Re-negotiating a buildin loan once signed

How frustrating- I have no idea bout the answer. I guess best to go and talk to your advisor at the Bank asap and just ask him/her. Do get back and tell us how it went - an interesting question.
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Old 23.11.2015, 12:12
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Re: Re-negotiating a buildin loan once signed

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With the construction of our house about to start, it seems the "plus values"*, i.e. extra costs, for the build are going to be more than we anticipated. Considering we are financing 28% of the build using our own funds, what are our chances of re-negotiating the mortgage to include these extra costs (probably to the tune of 10 - 15k)? My concern is that seeing as we have signed the mortgage contract, to re-negotiate it would be seen as breaking it and we would be liable for charges. Having said that, the loan period hasn't started yet (first payment due once excavation starts), so I think it still might be a possibility. We are with the Raiffeisen and have written to them and are awaiting a response. In the meantime, I thought I'd see if anyone has any mileage in this matter and what information we can possibly arm ourselves with before meeting with our advisor.


*"plus values" are such things as over budget flooring costs, electric blinds, extra electric sockets, tiled basement, wired ethernet, mosquito blinds etc.


edit: a mod please edit the title due to my atrocious typing skills
I do not have an experience with your situation, but technically you are not breaking the contract (i.e canceling and going to another bank). You are upgrading the contract and if you still fit within the risk profile for the 10-15k more I don't see why they would refuse (they are going to make more money). I can see some processing fee coming along the approval.
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Old 23.11.2015, 12:15
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Re: Re-negotiating a buildin loan once signed

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We did that too, but it obviously wasn't enough . The budgets for the flooring, kitchen, bathrooms etc are actually quite generous, but it's the rest, the "wants" rather than the "needs", that are upping the cost. I just wish we'd been a bit more clued up on that aspect and had made further enquiries before signing. Oh well, retrospect is a wonderful thing, is it not?
It is indeed. Having already built a house back in Belgium we were pretty clued up on those things so we managed it a whole lot better this time. You'll be an expert by the time the next one comes along.

We had added some ourselves based on past experience and the bank advisor recommended increasing it a bit as he said there are always 'must haves' that hadn't been thought about before.
Ours was the Domotech system ( for OH) and the much larger patio plus a double rather than single garage. We don't regret any of them but wish we'd gone for mosquito blinds too.
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Old 23.11.2015, 12:49
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Re: Re-negotiating a building loan once signed

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With the construction of our house about to start, it seems the "plus values"*, i.e. extra costs, for the build are going to be more than we anticipated. Considering we are financing 28% of the build using our own funds, what are our chances of re-negotiating the mortgage to include these extra costs (probably to the tune of 10 - 15k)? My concern is that seeing as we have signed the mortgage contract, to re-negotiate it would be seen as breaking it and we would be liable for charges. Having said that, the loan period hasn't started yet (first payment due once excavation starts), so I think it still might be a possibility. We are with the Raiffeisen and have written to them and are awaiting a response. In the meantime, I thought I'd see if anyone has any mileage in this matter and what information we can possibly arm ourselves with before meeting with our advisor.


*"plus values" are such things as over budget flooring costs, electric blinds, extra electric sockets, tiled basement, wired ethernet, mosquito blinds etc.
Usually you prepare the mortgages papers for nearer 100% of the project value so that at any time in the future you can remortgage without further legal costs.

I suspect it won't be an issue at all, this happens all the time. I would have thought you had a building loan at this stage that gets turned into a normal mortgage when it's completed. The additional funds will be a second mortgage at higher rate & require repaying as you have less than 35% equity.
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Old 27.11.2015, 12:55
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Re: Re-negotiating a building loan once signed

A quick update; our advisor got back to us and said of course it would be possible. However, we'd have to draw up a new mortgage agreement, which would cost us 1k and go back to the notary, incurring yet more fees. We decided not to bother in the end and concentrate instead on upping our savings as much as possible.
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Old 27.11.2015, 13:02
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Re: Re-negotiating a building loan once signed

IIRC (~5 yrs ago), our mortgage company (COOP) basically said no problems, but we waited until it was all finished and then added the extras... (rather than incrementally as the build progressed). There are always extras, so you you need to anticipate another 10% at least on everything...

Good luck... the fun starts now...
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Old 27.11.2015, 13:08
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Re: Re-negotiating a building loan once signed

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IIRC (~5 yrs ago), our mortgage company (COOP) basically said no problems, but we waited until it was all finished and then added the extras... (rather than incrementally as the build progressed). There are always extras, so you you need to anticipate another 10% at least on everything...

Good luck... the fun starts now...
we're keeping a close eye on any extras we have agreed to and sign off. I reckon we'll be a shade over 9% on top of the absolute basic cost. This is bearing in mind we have planned some major modifications to our basement, but that is already included in the general contract price and mortgage.
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Old 27.11.2015, 13:52
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Re: Re-negotiating a building loan once signed

If earn enough to get the bigger loan - I think the bank will happily lent you more.

But im not a banker :-)
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Old 27.11.2015, 15:02
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Re: Re-negotiating a building loan once signed

Go for a personal loan, it's expensive but try and pay it off as quikcly as possiblew shouldn't be too bad and at least yoiu'll be happy with the end result.

If you don't you're entering the dangerous world of...."we should have done that !"
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Old 27.11.2015, 15:06
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Re: Re-negotiating a building loan once signed

PaddyG, I am surprised you've not been to discuss this with your mortgage lender/bank yet. Tell us how you get on.

Last edited by Odile; 27.11.2015 at 15:17.
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Old 27.11.2015, 15:29
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Re: Re-negotiating a building loan once signed

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A quick update; our advisor got back to us and said of course it would be possible. However, we'd have to draw up a new mortgage agreement, which would cost us 1k and go back to the notary, incurring yet more fees. We decided not to bother in the end and concentrate instead on upping our savings as much as possible.
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PaddyG, I am surprised you've not been to discuss this with your mortgage lender/bank yet. Tell us how you get on.
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Old 27.11.2015, 15:33
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Re: Re-negotiating a building loan once signed

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Go for a personal loan, it's expensive but try and pay it off as quikcly as possible . . .
Yes. That option could even be cheaper than using a credit card to finance a house build.
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Old 27.11.2015, 15:43
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Re: Re-negotiating a building loan once signed

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Yes. That option could even be cheaper than using a credit card to finance a house build.

I did say it was EXPENSIVE, but if nothing else works, it will be cheaper than re-doing the floor/kitchen/bathroom/tiles or whatever in 3 years time, as you're really not happy and live in continual regret until you have what you want.

Normally your mortgage lender should agree to increase a little, but if the mortgages are already used to the max that has been registered with the notary, then, yes you will have to pay extra to have them increased and inscribed as such.

Alternatively, can you increase your down payment via pension fund or other means somehow, thus liberating some "mortgage money" and then use this to pay for the extra. Your mortgage remains the same, your personal input increases slightly.
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Old 27.11.2015, 15:55
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Re: Re-negotiating a building loan once signed

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I did say it was EXPENSIVE, but if nothing else works, it will be cheaper than re-doing the floor/kitchen/bathroom/tiles or whatever in 3 years time, as you're really not happy and live in continual regret until you have what you want.

Normally your mortgage lender should agree to increase a little, but if the mortgages are already used to the max that has been registered with the notary, then, yes you will have to pay extra to have them increased and inscribed as such.

Alternatively, can you increase your down payment via pension fund or other means somehow, thus liberating some "mortgage money" and then use this to pay for the extra. Your mortgage remains the same, your personal input increases slightly.
Like I said, we will be able to boost our savings enough to cover any extra costs (and I have a little stashed away on the side anyway ). It was just an idea to not to have to dip into our savings, but what are savings for anyway, if not for such things as holidays and building your own house?
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Old 27.11.2015, 16:17
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Re: Re-negotiating a building loan once signed

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Ooops, sorry, skimmed and missed. Sounds like you've got it sorted- so hurrah.
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