$620,000 Home Loan Down The Drain? Not A Chance!

Hello, it’s us again!

 

We’ve been talking about cladding for almost 6 months now and the tally as of writing is at $10,960,703.58. Yes, we’re counting.

 

Do you ever wonder why cladding is such a big deal for us?

 

Last week, we interviewed first-time home buyer, Sophie, who recently made an offer on an apartment building in Melbourne CBD.

 

“Honestly, it was such a stressful time for me. I am new to home buying. The fact that my $620,000 home loan could be rejected because that apartment I was in love with ‘appears’ to be clad in combustible materials!”

 

Sophie had no idea cladding was such a big issue until she’s hit a snag with the final approval of her home loan after making an offer (subject to finance) on a high-rise complex.

 

“My mortgage broker tells me that many major lenders are axing loans to any suspected or known apartments with combustible cladding right, left and centre. These big lenders are publicly taking a hard line on lending to borrowers like us wanting to buy in potentially hazardous buildings,” said Sophie.

 

And boy, Sophie is not wrong! Many lenders are likely to make obtaining loans for apartments super difficult for homebuyers in large high-rise complexes.

 

“Not only that, and even the apartment is in complying building, we need to show evidence the strata insurer knew of the cladding and that it complied before approving cover. Also, not all owners’ corporations are transparent and helpful. Many backs and forths later, my broker told me to either miss out on this unit and find the next one or keep going through with the hassle. I ended up losing the apartment, but I also felt sorry for the sellers, as they’d bought another property too,” she added.

 

Talk about Sophie’s choice!

 

The Victorian Cladding Taskforce estimates that there may be approximately 5,000 buildings in the state with non-compliant ACP (Aluminium/polyethylene composite cladding).[1]

 

This is precisely why we make cladding our ultimate passion.

 

We want to make sure you reap the benefits of the $600 million package to fix eligible buildings with combustible cladding, a world-first effort to tackle high-risk cladding and keep Victorians safe.

 

How can cladding impact you:

  • Home loan applications – harder for you to buy and sell
  • Hectic levies and owners corporation fees
  • Property sale documents

 

Under current sales disclosure requirements, buyers rely on vendors to declare any issues with cladding in sale documents. Buyers and sellers could sometimes come to agreements on how much apartment with cladding issues should be discounted, but only if the Owners Corporation was willing to work with them to rectify the cost of tackling cladding issues – which was very rare!

 

Avoid the pain that Sophie went through by simply calling the relevant OC Manager prior to those last stages of buying, they will be able to provide precise information about whether or not cladding may be an issue at the building.

 

But when you’re a Strata Plan customer, you won’t have annoyingly rare issues like the above. We are all about transparency, we hate hiding.

 

What value can Strata Plan add?

  • Full guidance and support by our expert team
  • Saving you money
  • hassle-free experience
  • YOU

 

Get your funding done painlessly.

 

What is your Owners Corporation management doing for you? If they are not going above and beyond like we are, then you need to be part of Strata Plan!

 

Don’t believe us?

 

Here’s our list of buildings that have so far been granted funding to rectify their cladding:

 

To all our non-customer readers, you’re definitely more than welcome to join the Strata Plan Family. Looking for a reliable Owners Corporation Manager? Look no further. Contact our expert team today, or schedule a free consultation with one of our Strata Plan experts.

 

 

[1] https://www.mondaq.com/australia/insurance-laws-and-products/651732/combustible-cladding-in-australia-an-insurer39s-guide

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