Getting a mortgage with over 50% deposit headache (but Approved by BNZ!)

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Forums › Finance and wealth management › Getting a mortgage with over 50% deposit headache (but Approved by BNZ!)

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cisconz
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#2161287 15-Jan-2019 09:00

Linux:

@eracode Do you live close to Milford? You are more than welcome to pop over and have a look over everything

Will even show you my personal bank account balance and this is money I have saved not related to the gift

John

Is that offer open to anyone?

Hmmmm

Linux

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#2161288 15-Jan-2019 09:01

cisconz:

Linux:

@eracode Do you live close to Milford? You are more than welcome to pop over and have a look over everything

Will even show you my personal bank account balance and this is money I have saved not related to the gift

John

Is that offer open to anyone?

Let's make it a Geekzone party at Milford beach

John

eracode

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#2161335 15-Jan-2019 09:28

Linux:

eracode:

As I said earlier, I can't help thinking there's more to this than meets the eye - or something we are not aware of - perhaps in the background somewhere.

On bare facts it doesn't add up.

@eracode Do you live close to Milford? You are more than welcome to pop over and have a look over everything

Will even show you my personal bank account balance and this is my money I have saved not related to the gift

John

Maybe that should have been PM'ed - I'll PM you.

Cheers

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mudguard

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#2161468 15-Jan-2019 12:18

Linux:
eracode:

As I said earlier, I can't help thinking there's more to this than meets the eye - or something we are not aware of - perhaps in the background somewhere.

On bare facts it doesn't add up.

@eracode Do you live close to Milford? You are more than welcome to pop over and have a look over everything

Will even show you my personal bank account balance and this is my money I have saved not related to the gift

John

But your savings still aren't relevant if you're not using it.
It would be like me saving a $100k deposit and buying a $500k house and applying for a $500k mortgage and saying no I don't want to use any of my money, I want to keep it aside and borrow 100%. But I'm still good for the mortgage.

Either way, unless I got a straight answer I'd still move banks. Which is annoying nonetheless.

Linux

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#2161496 15-Jan-2019 12:27

Moved banks this morning and they are processing the home loan now

John

tdgeek

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#2161527 15-Jan-2019 13:30

Does the RBNZ rules include that banks are limited to x amount of loans, in order to preserve a set minimum level of loans to assets, or loans to liquid funds?

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ajobbins

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#2161528 15-Jan-2019 13:38

tdgeek:

Does the RBNZ rules include that banks are limited to x amount of loans, in order to preserve a set minimum level of loans to assets, or loans to liquid funds?

Yes, there are reserve ratios set by the RBNZ as part of the fractional reserve lending banking system we (and many other countries) operate.

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tdgeek

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#2161531 15-Jan-2019 13:46

ajobbins:

tdgeek:

Does the RBNZ rules include that banks are limited to x amount of loans, in order to preserve a set minimum level of loans to assets, or loans to liquid funds?

Yes, there are reserve ratios set by the RBNZ as part of the fractional reserve lending banking system we (and many other countries) operate.

Thanks, I believed that was the case. Might be possible that Johns loan, while normal, became low priority if the bank is running close to its level, and would rather loan to first goes buyers or live in home buyers than investors at the moment? It seems there is no issue with the gift or the deposit, even though they mentioned the gift.

ajobbins

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#2161608 15-Jan-2019 16:00

tdgeek:

Thanks, I believed that was the case. Might be possible that Johns loan, while normal, became low priority if the bank is running close to its level, and would rather loan to first goes buyers or live in home buyers than investors at the moment? It seems there is no issue with the gift or the deposit, even though they mentioned the gift.

Another possibility is that they simply didn't want to lend to him as it wasn't worth their while. High deposit means smaller loan which means lower profit. Too small, and banks lose interest (pun intended).

A small loan coupled with the complexity of the gifting situation may have landed the application in the 'not worth our while' pile.

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Batman

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#2161652 15-Jan-2019 16:20

Linux:
Moved banks this morning and they are processing the home loan now

John

That's what the first reply of this very long thread suggested you did.

eracode

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#2161653 15-Jan-2019 16:24

ajobbins:
tdgeek:

Thanks, I believed that was the case. Might be possible that Johns loan, while normal, became low priority if the bank is running close to its level, and would rather loan to first goes buyers or live in home buyers than investors at the moment? It seems there is no issue with the gift or the deposit, even though they mentioned the gift.

Another possibility is that they simply didn't want to lend to him as it wasn't worth their while. High deposit means smaller loan which means lower profit. Too small, and banks lose interest (pun intended).

A small loan coupled with the complexity of the gifting situation may have landed the application in the 'not worth our while' pile.

That’s possible but it means that the bank repeatedly lied to him, at times in writing, about the reason they couldn’t/wouldn’t lend - and invoked the RBNZ to boot.

Despite the low regard some of us might have for banks in general, I’m not sure ASB would do that.

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quickymart

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#2161693 15-Jan-2019 17:45

I'm hoping the next post in this thread from John is "I got my loan approved! :)" because that would be awesome after going through all of this rigmarole.

mattwnz

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#2161710 15-Jan-2019 18:52

Could be worth the OP contacting the ombudsman to look into it, so others don't also get effected. Although it is probably not worth the effort if they can get the loan with another bank, and life is too short.

tdgeek

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#2161728 15-Jan-2019 19:36

mattwnz:

Could be worth the OP contacting the ombudsman to look into it, so others don't also get effected. Although it is probably not worth the effort if they can get the loan with another bank, and life is too short.

I agree

I could not care less what the reason is but we want to KNOW what it was.

Mistake, reaching our lending limit, more money from other loans elsewhere, etc

Linux

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#2161730 15-Jan-2019 19:41

Great progress today with the BNZ and should have approval tomorrow morning

John

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