Lender crackdowns costing property buyers their deposits
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Fast-rising residential property prices and fierce competition are exposing buyers to increasing legal risks of having their contracts rescinded and deposits forfeited.
A recent Supreme Court decision highlights that buyers who fail to strictly adhere to paying deposits by agreed dates are in breach of contract, can lose deposits and be ordered to pay court costs.
A Supreme Court ruling shows terms of property contracts will be strictly enforced.
Jessica Shapiro
Giles Stapleton, a barrister, of Selborne Chambers in Sydney, says: “It reinforces the importance of contract terms being crystal clear. Do not chance it.”
MacroBusiness
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All recent data shows that Australian mortgage demand is white hot.
The official lending commitments data from the Australian Bureau of Statistics (ABS) showed that the value of new mortgages (excluding refinancings) issued in December surged to record highs following explosive 31% year-on-year growth.
This growth was driven by owner-occupiers, where the value mortgages issued rocketed by 39% in calendar year 2020:
The CBA’s internal data for January also showed that new lending for housing soared to new highs:
It seems Australian lenders are struggling to cope with the influx given mortgage approval times have blown-out to months:
Big bank home loan approvals see long delays afr.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from afr.com Daily Mail and Mail on Sunday newspapers.