Hey guys, just curious what is BICC? I got a letter of offer from MBB for home loan for 37 years (35 + 2 years construction) and it mentions BICC.

I understand that the 2 years construction is the BICC. My question is do the buyers have to pay extra for the BICC? And the BICC protects the buyers or the developers?

Just to add, BICC = Building in Course of Construction.

Bank's offer to lend money is based on the security of property (which includes the land and the building) so technically speaking, if the property is building, the security is incomplete. BICC is a form of insurance whereby insurance is purchased to secure the Bank's repayment in the event if the building is forfeited or abandoned.

Yes, borrowers need to pay for this extra insurance and it benefits neither the borrower or the developer but rather the Bank. Well, it could be argued to favor the borrower a bit but generally, the Bank.

You get the point but then again, it's weird.

What type of property are you purchasing directly from the developer?