What does “Mortgageable Condition” mean?
Put simply, this means our homes being deemed fit for mortgage lending purpose.
This means that you can
a) Switch mortgage provider for a better interest rate
b) Raise a mortgage top-up
c) Sell your home for a mortgage-backed price (subject to the normal repayment assessment and other lending criteria).
Due to the presence of defective blocks in our homes, they are not mortgageable.
The restoration of Mortgageable Condition should have been at the heart of the Government’s Redress Scheme.
The Redress Focus Group – Banking and Insurance have sought clarity from the Banking sector as to whether the various remediation options prescribed by the scheme will restore our homes to “Mortgageable Condition”.
As it stands today, the Banking Sector is working on their standards, policies and procedures on this matter.
The Government has not liaised with the Banking sector on whether the various remediation options will restore mortgageable condition. This work should have been done in advance of the scheme going live.
Homeowners cannot assume the prescribed remediation option will restore “Mortgageable Condition”.
The Banking Sector is working through the issues and understand the need for clarity regarding restoration of Mortgageable Condition. We are pushing for clarity on this issue as soon as possible.
We urge all impacted homeowners to contact their lender (where relevant) before proceeding with any remediation work under the scheme. Our homes should be regarded as normal for lending purposes once remediation work is complete. This cannot be assumed to be the case as things stand today.