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What does building depot mean?

A construction depot is money to (FAR) build

When you buy a new property it is usual to regularly pay part of the Bouwsom to the contractor/project developer. For new homes It is then customary to deposit the mortgage amount at the beginning of the construction in a construction depot.

This building depot is actually just a bank account which is made during the construction of the home payments. The difference with a normal account is that the payments take place at predetermined times (when completion milestones during construction). When the house (satisfactorily) is fully delivered the last term is paid.

In the case of a conversion, the amount of the deposit is dependent on the Bouwsom, the estimated value of the house, etc.

A construction depot has a maturity of up to 2 years, the interest that is reimbursed is equal to the mortgage rate.

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