Paying Interests on Pre-construction
I had previously discussed about the clause developers include in their contracts that allows them to increase the price of a property. But there’s also another clause that needs to be taken into consideration if you are planning on getting a loan from any bank to finance your property.
After the first inspection of the property, you will be usually given a month to complete the remaining balance of the property. Because it is up to the bank to make the payment to the developer, it is important to be on top of the person that is handling your loan request way before the inspection day comes along, since the whole process could easily take more than a month.
In cases where the bank is unable to make the payment on time to the developer, you will usually have to pay an interest of 1.5% after the first month, which could increase even further after two months.