Failed property sales are growing as many buyers are unable to secure enough financing, bond originator ooba ooba (formerly MortgageSA) said on Monday.
”We have seen a number of offers to purchase falling through of late because potential buyers are not able to get the finance they need after they have had their offers accepted,” said ooba provincial sales manager Jenny Rushin.
Part of the problem was that potential buyers did not understand how to calculate the size of the home loan for which they qualified. Banks had also tightened up on their lending criteria.
”It’s hugely disappointing for buyers and sellers alike.”
Rushin said that pre-qualified buyers were in a much stronger position to negotiate with sellers.
”Because they already have finance, sellers feel confident that the offer will fly and may favour them over those who aren’t pre-qualified.”
The company has now launched a service that tells buyers just how much they could spend on a home, she added. – Sapa