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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Linux

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#2168723 28-Jan-2019 09:01

A few Geekzone users know the finer details of the loan and know the Bank really stuffed-up, They have called me twice now (different staff) to say the Mortgage is approved and made it clear it was not related to RBNZ and the credit team mislead the staff looking after my application

My sister just got a mortgage approved this week by the same bank and they went above and beyond to look after her!

John

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pctek

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#2168724 28-Jan-2019 09:01

banks don't just lend based on deposit.

Or how much you earn.

Son bought mine for 1/2 market value - we had to do a lawyer letter saying we were gifting him the (extra value).

He earns heaps, no issues paying mortgage.

But.

Friends son also earns heaps. Why can't he now get any loan from bank, never mind mortgage? Because his credit...he overspent on toys, he had loans everywhere, he wasted so much they are now on a strict budget to pay it all back. Banks look at stuff like that too, that's why they look at your statements, never mind debt, to see if you restrain yourself or not.

They don't like it if you are a spender.

Linux

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#2168726 28-Jan-2019 09:05

@pctek That is correct they went thru 3 months of my bank statements and the staff member says you must like ' Marty's pie's ' LOL The cafe across the road from work

I have got nothing on HP and have not had anything HP for a number of years

John

quickymart

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#2194874 10-Mar-2019 07:56

eracode: As @ajobbins says, different banks treat gifts in different ways - and many have changed their policies in recent years as Bank of Mum and Dad has become more prevalent. Some will allow gifts as part of the equity deposit provide the donors complete a certificate or declaration addressed to the bank confirming it’s a gift and not a loan. What they are trying to avoid is okaying a loan where the debt servicing burden is OK on the bank debt but not OK on the total debt (I.e. including the parents’ loan).

Despite all that, I bet it’s the more stringent 5% cap on new loans with LVR higher than 70% on non-owner occupied property that is in play here.

Sorry for bumping this thread, but a cousin of mine has come into some extra money via family (gifted) and is in a similar situation to John's, looking to buy a house, etc. Regarding the bolded text, where would he get such a certificate from? The bank? Or is it something he can download and complete online? He has asked me as he doesn't know much about this.

Linux

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#2194875 10-Mar-2019 08:01

@quickymart it's nothing special just type it out and print it

Wording along the lines of I (first name, last name) am gifting (full name) x amount and both sign it

Edit: Date it and of course title is gift certificate

MileHighKiwi

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#2194877 10-Mar-2019 08:07

quickymart:
eracode: As @ajobbins says, different banks treat gifts in different ways - and many have changed their policies in recent years as Bank of Mum and Dad has become more prevalent. Some will allow gifts as part of the equity deposit provide the donors complete a certificate or declaration addressed to the bank confirming it’s a gift and not a loan. What they are trying to avoid is okaying a loan where the debt servicing burden is OK on the bank debt but not OK on the total debt (I.e. including the parents’ loan).

Despite all that, I bet it’s the more stringent 5% cap on new loans with LVR higher than 70% on non-owner occupied property that is in play here.

Sorry for bumping this thread, but a cousin of mine has come into some extra money via family (gifted) and is in a similar situation to John's, looking to buy a house, etc. Regarding the bolded text, where would he get such a certificate from? The bank? Or is it something he can download and complete online? He has asked me as he doesn't know much about this.

Google 'justice of the peace statutory declaration form'.

You can download the form from the JP website and you can also use the site to locate a JP in your area who will need to witness and verify the person making the declaration. This shouldn't cost anything, I've never paid for a JP to witness docs.

Linux

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#2194878 10-Mar-2019 08:11

A JP does not need to witness it, The bank and lawyer confirmed this and also my flatmate that is a JP

eracode

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#2194965 10-Mar-2019 11:05

quickymart:
eracode: As @ajobbins says, different banks treat gifts in different ways - and many have changed their policies in recent years as Bank of Mum and Dad has become more prevalent. Some will allow gifts as part of the equity deposit provide the donors complete a certificate or declaration addressed to the bank confirming it’s a gift and not a loan. What they are trying to avoid is okaying a loan where the debt servicing burden is OK on the bank debt but not OK on the total debt (I.e. including the parents’ loan).

Despite all that, I bet it’s the more stringent 5% cap on new loans with LVR higher than 70% on non-owner occupied property that is in play here.

Sorry for bumping this thread, but a cousin of mine has come into some extra money via family (gifted) and is in a similar situation to John's, looking to buy a house, etc. Regarding the bolded text, where would he get such a certificate from? The bank? Or is it something he can download and complete online? He has asked me as he doesn't know much about this.

A certificate will not be necessary unless the bank requires it - in which case ask them to provide you with the required wording.

Sometimes I just sit and think. Other times I just sit.

Linux

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#2340369 18-Oct-2019 20:32

Bit of an update on this old thread

My Mum went into the ASB today and the branch manager came out and saw her and the branch manager asked after me and advised what happened to me will never happen to anyone else again

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