Financing delays being experienced
The policy team has been receiving member feedback on HomeBuilder that brokers and financiers are delaying the progress of finances on the basis of land needing to be registered before valuations are carried out, or as part of the loan agreements.
The HomeBuilder program is causing substantial demand for new house and land development and payment is only made once construction starts. Delays in the progress of these new homes is very concerning and frustrating for new home buyers.
The Institute’s view is that arrangements have been in place for a long time to facilitate split contracts and off the plan arrangements to facilitate home buyers getting a start on their homes and financiers should do their best to help home buyers.
We note the Australian Banking and Finance Industry Residential Valuation Standing Instructions of the Australian Property Institute provides clarity for valuers to enable valuations to be undertaken prior to registration or an issue of the title for a new lot for mortgage security action.
We encourage members to keep an eye on this issue as it can create unnecessary hiccups for home buyers and it is hoped home buyers check that their broker or financier has arrangements that will help them into a new home with minimum delays.
If you are experiencing these issues please let us know by emailing our Policy Manager, Martin Zaltron.