A home purchase is a big deal, especially for the first-time homebuyer. If your client makes it all the way through the application process, they’re probably serious about going through with the deal. Australians are offered a cooling-off period to gather their thoughts and be sure that they’re ready to dive into homeownership.
It’s important to convey that this period is a very short time. Plus, the window varies from one territory to another. If you believe that your client needs a couple of days to be sure about their next steps, go over the following information with them.
The home loan application process is an arduous road, so it might baffle some that an individual requires some time to cool off. It’s not always the individual who changes their mind; sometimes it’s the due diligence that does it for them.
There are several moving parts during the homebuying timeline, including the valuation, inspection, and appraisal. Things can get uncovered during the inspection phase. The individual has to decide if they’re willing to live with those discoveries or back out altogether.
The clock starts ticking down when the individual receives a signed copy of the agreement. It only ticks on business days, but the territories each have their own window. Victoria allows 3 business days. If the individual goes over the three business days, they’ll incur a fee or lose their deposit. Tasmania has no cooling-off period, so your client needs to be sure before they receive their signed agreement.
Cooling-Off Period Conclusion
Mortgage Street understands that a home purchase is a life-changing event. We adhere to the cooling-off period stipulations set forth by the Australian territories. We respect the applicant who wants a couple of days to solidify their thoughts and wants to sign their purchase agreement with confidence.