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!)

Linux

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#244986 13-Jan-2019 09:43

Well new reserve bank rules came into play on 1st January 2019 and thanks to these new rules my Mortgage was declined as the deposit was too big!

Go Figure! Parents lawyers now involved

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#2159949 13-Jan-2019 09:56

I can point you to an excelled broker of you need help solving the problem without paying lawyers.

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gzt

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#2159950 13-Jan-2019 09:57

There is no maximum deposit. Someone at the bank is going to look very silly.

Aredwood

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#2159951 13-Jan-2019 09:58

Do you have any links or information about the new rules? As I don't understand why setting a max deposit size could be a benefit.

Contact a good mortgage broker, and maybe get a mortgage from a finance company. As finance companies have less restrictions on lending.

Can you just borrow more money, get a floating rate loan initially. Then repay that money a day or two after drawdown.

Edit to add

Are you buying a house on the open market?

As I did hear of someone getting blocked from buying a house with a large deposit. But the reason was because they wanted to buy one of those affordable houses built under the SHA rules. And they were blocked from buying it as it was judged that their financial situation was too good.

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#2159984 13-Jan-2019 09:58

gzt: There is no maximum deposit. Someone at the bank is going to look very silly.

Big cheese at bank has had it confirmed by reserve bank last week!

John

surfisup1000

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#2159985 13-Jan-2019 09:59

I thank the days (90's) when buying a house was easy.

I wonder if prices will crash like some Aussie cities. Which I'm sure they will. History repeats.

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#2159986 13-Jan-2019 10:01

Aredwood: Do you have any links or information about the new rules? As I don't understand why setting a max deposit size could be a benefit.

Contact a good mortgage broker, and maybe get a mortgage from a finance company. As finance companies have less restrictions on lending.

Can you just borrow more money, get a floating rate loan initially. Then repay that money a day or two after drawdown.

I wish it was that simple the issue is a have disclosed the deposit amount to a bank, I now can't go to another bank or mortgage broker!

Issue is 100% not the banks my parents lawyer has explained to the real estate agent the issue with the new rules stopping the mortgage approval

John

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#2159987 13-Jan-2019 10:03

I am meeting a lawyer tomorrow with my parents so will keep thread updated on the outcome but it caught the bank my surprise and they were like WTF!

John

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#2159988 13-Jan-2019 10:04

Geektastic: I can point you to an excelled broker of you need help solving the problem without paying lawyers.

I'm not paying the lawyer

surfisup1000

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#2159989 13-Jan-2019 10:04

Structure a fixed/variable mortgage, pay the reduced deposit for the fixed, then pay off the variable portion of the mortgage using the money left over from the reduced fixed deposit.

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#2159990 13-Jan-2019 10:06

surfisup1000:

Structure a fixed/variable mortgage, pay the reduced deposit for the fixed, then pay off the variable portion of the mortgage using the money left over from the reduced fixed deposit.

I can't change anything around the application as I have disclosed the information already to a bank, If I had known I would of done a deposit of $1 under the 50% mark and it would of been approved straight away

John

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#2159991 13-Jan-2019 10:10

If I had done the same application on December 29th it would of been approved but I did the application on the 7th of January 2019

John

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#2159992 13-Jan-2019 10:12

Maybe contact stuff.co.nz with your story. Considering that the current government has made a big song and dance about building more houses and getting more people into their own homes. They definitely need to be called out for enacting silly rules that do the opposite of what they claim.

Those silly rules would probably be gone by lunchtime.

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#2159994 13-Jan-2019 10:17

There would also be lots of mortgage refinancing, people moving house, downsizing etc. Where new mortgages are getting advanced which will have way over 50% equity. Which would also get snagged by such rules.

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#2159995 13-Jan-2019 10:19

Aredwood: Maybe contact stuff.co.nz with your story. Considering that the current government has made a big song and dance about building more houses and getting more people into their own homes. They definitely need to be called out for enacting silly rules that do the opposite of what they claim.

Those silly rules would probably be gone by lunchtime.

I have tweeted @StuffNZ & @NZherald and no response also included the Labour party this morning

John

mudguard

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#2160006 13-Jan-2019 10:39

What are these new rules? From my hazy days of doing mortgages the only problem I can think of is where the deposit came from. IE gifted.

Basically if someone hasn't saved a portion of the deposit themselves then the bank will be reluctant to lend even if they can afford it.

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