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APRA crackdown leaving off the plan buyers high and dry

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Australian Broker | 29 Sep 2015, 06:38 AM Agree 0
Fears APRA crackdown could leave off the plan buyers without finance when it comes time to settle
  • Tim H | 29 Sep 2015, 10:51 AM Agree 0
    Forget "could" happen try is happening already. I have had two clients recently both owner occupiers who have gone back to their lender who pre-approved them around 18 months ago and been told you don't qualify now.

    I had to find alternate lenders in both cases and one had to get additional funds from his parents due to the lower loan amount approved.

    These two had not changed their circumstances, had saved additional funds during the construction period and had not borrowed any additional funds.

    Fortunately, valuation was not an issue although both properties were valued at the purchase price negotiated over 12 months ago. Both clients were able to come up with the 20% deposit plus funds for costs.

    Yes I think their will be some carnage around the "off the plan" market and as per the above it will not just be investors that will get burnt.
  • Papery | 30 Sep 2015, 10:04 AM Agree 0
    Yep Tim, it is already happening. Luckily my clients were able to escape their contract with just a minor fee to the solicitor for the legals. I, on the other hand, am down more than 30 hours of all that stuff brokers do to get a deal done.
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