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FAR Northerners trying to enter the property market are finding success with house hunting but getting their hands on the key to the front door is a lot harder than three years ago.
Agents have seen an increase of property contracts returned after buyers had their finance fall flat because banks are tightening their funds available. Jai Hobbs, director of Hobbs Financial Services, said post-GFC the Cairns economy was still struggling and banks were taking extra caution. “Previous credit history can be a burden when obtaining finance if there has been an issue in the past,” he said, adding that lenders mortgage insurance can be a stumbling block. “Unlike lenders where there are literally hundreds of options, with mortgage insurers options are very limited, mostly to two.” Mortgage Choice Cairns operations manager Lindon Reed said banks were “dragging out” the loan application process. “My best advice to clients is instead of signing a 14 day finance and 30 days for settlement contract, it’s easier and they’re more likely to getthe funds through on time is by signing a 21 day finance and 40 day settlement.” she said. Recently, agents have received feedback about some banks advised buyers to hold off purchasing a property as the market is yet to plummet further. “I don’t give out legal or financial advice so unless the person is an evaluator or someone with authority to give out that detail then lenders shouldn’t be telling people the market is still dropping,” Powe Property agent Lucas Sexton said. Commonwealth Bank media advisor Tracy Hicks said Commonwealth Bank’s lending criteria had not changed during or after the GFC.
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