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

John

Great news John!!!!

Linux: Oh BNZ could not figure out what the other bank was on about

John

Is it ok to name and shame? If it's Westpac, we have a lot of clout there, I would be keen to ask why

Seems to me its a simple issue. Policy, RBNZ limits, and so on, BUT they mislead you, that is the problem.

Linux: Oh BNZ could not figure out what the other bank was on about

John

I've also found BNZ was really good when we were shifting from our previous bank. If you've got other savings, their TotalMoney product is great and can save you a lot.

I did notice that they were perhaps much better at winning our business than retaining our business though. Getting our initial (several hundred thousand dollar) mortgage was actually quite a bit easier than adjusting it (tens of thousands) a bit later on. I suspect that had a lot to do with who we were dealing with. If there is anything else you want from your bank (platinum credit cards, insurance, new bike loan, etc.), ask for it now while you've got the A-team working to win your business.

tdgeek:

Linux: Oh BNZ could not figure out what the other bank was on about

John

Is it ok to name and shame? If it's Westpac, we have a lot of clout there, I would be keen to ask why

Seems to me its a simple issue. Policy, RBNZ limits, and so on, BUT they mislead you, that is the problem.

tdgeek:

 

Is it ok to name and shame?

 

He already named in previous posts in this thread

In the LVR factsheet on the RBNZ website:

15. What can I do if I think my bank is being unreasonable in the way it is implementing the LVR restrictions?
The Reserve Bank sets out the minimum requirement for banks with the LVR rules. It is up to each bank to establish its own practices and policies for lending within those rules. If a bank wants to apply a stricter policy that the rules require, they are within their rights to do so. Borrowers who are dissatisfied with the stance or service offered by a bank are at liberty to take their custom to other banks

Very good advice indeed!!

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

John

That's my bank. I hope they're as good to me as they were with you when it comes time for me to ask for a mortgage :)

I've got the advantage of working for a bank on my side with my house hunting.

Nobody at work could figure out what John's bank was on about when I told them and pretty-much said they would have it sorted and approved within a day no problems if John was to come over to us. It is a shame really that there was advise given that was a massive confusion to John making him feel that he couldn't get a mortgage anywhere and to be perfectly honest I would have written a proper complaint about it given this misinformation.

But, good news John! I expect to be invited to the housewarming.

Long thread, which I honestly haven't read all of.  However, you're all seem to be talking just about the deposit in terms of loan approval, but that's by no means the whole picture.  Being able to service the loan is another big part of the approval.  i.e. interest to income ratio.  Is that potentially causing the issue?  RBNZ may have changed levels on those.

Earbanean:

 

RBNZ may have changed levels on those.

 

Checked, RBNZ don't have interest to income regs, but banks do.

Earbanean:

Long thread, which I honestly haven't read all of.  However, you're all seem to be talking just about the deposit in terms of loan approval, but that's by no means the whole picture.  Being able to service the loan is another big part of the approval.  i.e. interest to income ratio.  Is that potentially causing the issue?  RBNZ may have changed levels on those.

Linux: 

BNZ don't seem to have an issue

John

Yep, different banks will have different levels, based on their risk appetite and how their total book is already positioned.  It's not a top down hard reg on them from the RB.