Do Banks Require Cameras?
It depends. Camera requirements vary by lender, loan size, and borrower relationship. Here's what you need to know.
Current Trends
Increasingly Common
More lenders are adding camera requirements, especially for larger loans.
Risk-Based
Higher-risk loans (larger amounts, new borrowers) more likely to require cameras.
Preferred, Not Required
Many lenders prefer cameras but don't mandate them. Offering cameras can improve terms.
Portfolio Standard
Some lenders make cameras standard for all construction loans.
Why Lenders Like Cameras
The Trend Is Clear
While not universally required today, construction cameras are becoming standard practice. Lenders increasingly see them as basic risk management. Projects without cameras may face more scrutiny or higher costs in the future.
Frequently Asked Questions
Is there a legal requirement for construction cameras?
No general legal requirement exists. Camera requirements come from individual lender policies, not regulations. However, specific contracts or local requirements might apply in some cases.
What loan sizes typically require cameras?
Requirements vary by lender. Some require cameras for all construction loans. Others only for loans above €500K, €1M, or €5M. Smaller loans often make cameras optional or incentivized.
Can offering a camera improve my loan terms?
Possibly. Some lenders offer better rates, faster draws, or reduced inspection requirements for projects with camera documentation. Ask your lender about documentation-related benefits.
Who pays for the camera—borrower or lender?
Typically the borrower or builder. The camera is a project cost, like other documentation expenses. Some lenders may subsidize cameras for preferred borrowers. The cost is minor relative to loan value.
Related Topics
Be Ahead of Requirements
Don't wait for requirements. Get cameras now and potentially benefit from better terms.
