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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#2162544 17-Jan-2019 13:10

(Removed)

Tomorrow she is going into the bank with a copy of my mortgage approval from BNZ

Keep you posted but looks like someone messed up

John

Edit: Sorry my mum had to call the bank for another reason and the bank manager asked mum about my mortgage Application and she advised approved by BNZ no issue

eracode

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#2162549 17-Jan-2019 13:23

Linux: Interesting progress this morning with a call to my mum from the bank!

Tomorrow she needs to go in and see them with a copy of my mortgage approval from BNZ

Keep you posted but looks like someone messed up

John

Edit: Sorry my mum had to call the bank for another reason and the bank manager asked mum about my mortgage Application and she advised approved by BNZ issue

Maybe ASB want proof of the BNZ approval so that they can report BNZ to the RBNZ for not applying the rules properly. 😛

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#2162550 17-Jan-2019 13:23

Linux: Interesting progress this morning with a call to my mum from the bank!

Tomorrow she needs to go in and see them with a copy of my mortgage approval from BNZ

Keep you posted but looks like someone messed up

John

Edit: Sorry my mum had to call the bank for another reason and the bank manager asked mum about my mortgage Application and she advised approved by BNZ no issue

Needs to, or was asked if she could go in?

Linux

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#2162551 17-Jan-2019 13:24

tdgeek:

Linux: Interesting progress this morning with a call to my mum from the bank!

Tomorrow she needs to go in and see them with a copy of my mortgage approval from BNZ

Keep you posted but looks like someone messed up

John

Edit: Sorry my mum had to call the bank for another reason and the bank manager asked mum about my mortgage Application and she advised approved by BNZ no issue

Needs to, or was asked if she could go in?

Asked sorry

The bank is just 3 minutes drive away

John

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#2163499 19-Jan-2019 04:51

@Linux How did your mother get on with meeting ASB? Anything you can update us on?

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Linux

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#2163502 19-Jan-2019 06:56

@eracode Was postponed to next week

Went unconditional on the house yesterday

John

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#2163548 19-Jan-2019 08:30

Linux: @eracode Was postponed to next week

Went unconditional on the house yesterday

John

Excellent news - good on you!

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#2163697 19-Jan-2019 13:25

Linux: @eracode Was postponed to next week

Went unconditional on the house yesterday

John

Nice job!

chimera

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#2165336 22-Jan-2019 13:16

Be very interested to hear ASBs response...

It *appears* to be a total misinterpretation of the rules by ASB. They are following what they THINK the RBNZ rules are (savings does not = gifting) and have denied you on that.

The main new rules that changed recently were basically:

- 20 percent of new loans to owner-occupiers with less than a 20 percent deposit (was 15% of new loans. however, as this is effectively an investment, it's not relevant)

- 5 percent of new loans to investors with a deposit of less than 30 percent, down from the previous 35 percent limit (as you've mentioned you have a higher deposit than this, it's not relevant)

From what I can tell from skim reading this thread is that the issue appears to be ASB concerned with the gifting side. The rule is, if the money (or some of it) you're using towards your deposit is gifted, then you need to show the bank where the money came from, but the gifter won't have any future obligations to the bank. However, if the gifted money happened to be via a mortgage top up on the equity your parents have on their own home (eg: your "gift" = you parents using their own home as collateral for the loan) then they become guarantors and this could most definitely change things. I am assuming however that the gifting was cash they simply had in the bank.

I don't think I read anywhere "how" you were gifted the money, from a financial sense.

Linux

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#2165488 22-Jan-2019 14:54

Just had a call from the Bank manager to say my mortgage is now approved (BNZ sorted me out ASAP so not changing) advised it was the banks interpretation of the RBNZ rules

John

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#2165496 22-Jan-2019 15:06

Linux:

Just had a call from the Bank manager to say my mortgage is now approved (BNZ sorted me out ASAP so not changing) advised it was the banks interpretation of the RBNZ rules

John

Then ASB are muppets and will lose a lot of business due to their poor interpretation of the rules (assuming the gift was simply cash with no guarantor / security against other assets)

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Linux

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#2165508 22-Jan-2019 15:25

chimera:

Linux:

Just had a call from the Bank manager to say my mortgage is now approved (BNZ sorted me out ASAP so not changing) advised it was the banks interpretation of the RBNZ rules

John

Then ASB are muppets and will lose a lot of business due to their poor interpretation of the rules (assuming the gift was simply cash with no guarantor / security against other assets)

@chimera 100% gifted do what I like with it and never have to pay back 1 cent! Mum and Dad made that very clear to ASB

I could of spent it on one hell of a trip around the world

John

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#2165513 22-Jan-2019 15:31

Linux:

chimera:

Linux:

Just had a call from the Bank manager to say my mortgage is now approved (BNZ sorted me out ASAP so not changing) advised it was the banks interpretation of the RBNZ rules

John

Then ASB are muppets and will lose a lot of business due to their poor interpretation of the rules (assuming the gift was simply cash with no guarantor / security against other assets)

@chimera 100% gifted do what I like with it and never have to pay back 1 cent! Mum and Dad made that very clear to ASB

I could of spent it on one hell of a trip around the world

John

Well, consider yourself very lucky to have had successful parents who could help you out in the housing market! I'm the complete reverse, my own rental portfolio is in place to eventually help my parents out who (in their 70's) currently rent.

Great news you eventually got it sorted anyhow!

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#2168658 27-Jan-2019 23:38

Well just read this thread from start to finish and what an anti-climax lol.

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#2168701 28-Jan-2019 07:08

mudguard: I'm still betting they've used the RB as an excuse and have declined the application based on John not putting any of his savings in.
What is always interesting in these situations is what BNZ will have made with ASB's credit check.
Usually it prompts a question asking what the result of the first bank's application.
But it could be BNZ have no gifting rules. My only experience is with another bank who still refer to it in their terms.

This is how I read it from the start and is still how I'm reading it. Each bank is required to have a certain amount of safe lending {customer has high savings and high equity) and a maximum amount of not so safe lending (customer has low savings and low equity) . This is between the rbnz and the bank. It's not a fixed black and white number per person but an overall/global calculation. Perhaps the asb has overstepped its limits and can't take on any more risk. Not sure why they consider OP to be risky, we don't have all the details.

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