1. It’s interest you have to serve while your project is under construction
2. Your installment would kick in when completion is done
3. the progressive interest you are paying wouldn’t reduce your initial capital borrowed from bank
4. Progressive interest will be calculate according to schedule of payment, means the progress of the construction. THe table and calculation will be below
hi, it splits down to.
1) 10% Downpayment
2) 10% stg 2a (Pilling / below ground works)
3) 15% stg 2b (Concrete slab for your unit
4) 10% stg 2c (bricks wall)
5) 10%stg 2d (internal piping and wiring)
6) 10% stg 2e (internal and external wall plastering
7) 5% stg 2f (sewerage serving the building)
8) 5% stg 2g (drainage serving the building)
9) 5% stg 2h (Road serving the building)
10) another 20% upon VP (splits down to 12.5+5+2.5)
So for example, your property is 500k. after the bank release the first payment (example : 15% = 55k to the developer)
which means u have to pay the loan interest of 55k x (your bank interest rate) . (Note : INterest rate only, without Principal)
if your property is 500k, loan amount 300k which means differentiate sum is 200k.
the developer will claim from you first, which means you have to pay your portion (upon claim attached with architect certificate) until you’ve finished your portion only the developer will send their billing to the banks to claim the balance
hope that helps.
no they will claim from you first, together with attached architect certificate