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  • Lending - BNZ

    Despite a 20k increase from rent/salary income, BNZ have just declined our latest pre approval. 9 months ago we secured pre approval to 500k but did not buy anything, so we were unable to secure any lending with BNZ today! What is going on here, have they changed their current policy and debt to income levels? Its as if they could not justify their actions. How can it change so dramatically.

    Very frustrating, just when you think you are doing well and slowly getting somewhere, one bank pulls the rug from under you!

    Have now gone to a broker, any thoughts on what I can do to secure more lending? 2nd tier? Another bank?

    FH
    Last edited by Frezzinghot; 30-01-2018, 06:02 PM.
    "DEBT BECOMES IRRELEVANT WITH INFLATION".

  • #2
    Same thing happened to me. I approached a broker who could secure a loan from a 2nd tier lender. But bit expensive. Then I approached FMT on my own and got a much better deal than with the broker.

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    • #3
      Just go to a few other banks. It also depends on the specific lender too. Some lender might approve some might not.

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      • #4
        I was with BNZ for 25 years and always had a mortgage with them. On marriage separation they pre approved me for what I considered a very conservative amount, strange as I was the breadwinner. They werent even interested in my business. Went to broker, got lending thru ASB. No problems. BNZ dont deal with brokers I understand. I have no loyalties to banks, they all have crappy service and it appears all their consultants are fresh on the job and follow a set selling strategy with no flexibility.

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        • #5
          Pretty sure BNZ do deal with brokers - I've never dealt with them direct as far as I know, and I have debt with them.

          But totally agree on the generalisation of crappy service and fresh consultants. It seems that being a mortgage lending manager is not the end-game career choice for many. Lots of young ones coming through, and they're gone in a year or two. I've had 6 ANZ Business Banking Managers in less than 6 years - I don't even bother getting to know their names anymore.
          AAT Accounting Services - Property Specialist - [email protected]
          Fixed price fees and quick knowledgeable service for property investors & traders!

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          • #6
            Originally posted by RollingCloud View Post
            I was with BNZ for 25 years and always had a mortgage with them. On marriage separation they pre approved me for what I considered a very conservative amount, strange as I was the breadwinner. They werent even interested in my business. Went to broker, got lending thru ASB. No problems. BNZ dont deal with brokers I understand. I have no loyalties to banks, they all have crappy service and it appears all their consultants are fresh on the job and follow a set selling strategy with no flexibility.
            The thing is this. I think I have just been snowballed! How can my position from just a few months ago turn into no lending at all? We are now better off cashflow wise $20k better per annum. Cashflow is king right, I just don't understand them and the explanation was just bullshit!

            Sorry if I sound a little pissed but you spend so much time jumping through hoops for them, just for them to turn around and decline an application with no explanation at all!

            Confused!!

            PS. when we were with ASB we loved them.
            "DEBT BECOMES IRRELEVANT WITH INFLATION".

            Comment


            • #7
              Originally posted by Anthonyacat View Post
              Pretty sure BNZ do deal with brokers - I've never dealt with them direct as far as I know, and I have debt with them.

              But totally agree on the generalisation of crappy service and fresh consultants. It seems that being a mortgage lending manager is not the end-game career choice for many. Lots of young ones coming through, and they're gone in a year or two. I've had 6 ANZ Business Banking Managers in less than 6 years - I don't even bother getting to know their names anymore.
              Soon you will be talking to a laptop! There in lies the problem, if they knew what you were trying to achieve and have a history of success, why wouldn't you lend to someone.

              FH
              "DEBT BECOMES IRRELEVANT WITH INFLATION".

              Comment


              • #8
                BNZ are tossers, was with them for years with many big loans and they gave me no favors. Finally I saw the light and changed banks.

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                • #9
                  Interesting. I’m a “premium” BNZ customer. I get no fee on my credit card, a little book of vouchers of mostly Auckland businesses (completely useless for me in Wellington) and an extra two phone calls a year to check I’m still breathing. Now I think of it, I think it is a new voice at the end of the phone each time.

                  In the years I’ve been with them they have never been first to offer me the best deal but have always caved into my demands when I was one foot out the door. My fixed rates roll over in May. Let’s see if I’m still a BNZ customer come June.
                  Last edited by Learning; 31-01-2018, 09:24 PM.

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                  • #10
                    FH a relative of mine tried to rollover a BNZ $150k mortgage on a $2.5m property. They wanted all their accounts for all entities, all details on all properties etc. So he just paid it off with cash and they lost that loan.

                    But a friend of mine who has a chequered credit history just got a loan from BNZ for a house, so who knows...
                    Squadly dinky do!

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                    • #11
                      BNZ changed their serviceability calculations - I don't have all the details on the changes but our contact - who has been the same person for over 18 mths and is very good - informed us of the changes back in Sept/Oct I think.

                      All banks are the same - lots of role changes in middle management, as the new flunkie comes into the role they want to make their mark, they tinker with the rules and the minions below need to follow the new policy.

                      What makes it worse is that the customer contact at the bank has no authority to make decisions - everything needs to go through the credit team who are locked in a dark room and are never allowed out to meet customers. If they make a call there is little your contact can do to change the decision.

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                      • #12
                        Broker. Don't waste your time. There are a couple of regular posters in here, Andrew Perry (Wellington Broker) is a good sort
                        Free online Property Investment Course from iFindProperty, a residential investment property agency.

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                        • #13
                          This was a note going around in August 2017 by a mortgage broker explaining the change in debt service calculations by BNZ for retail borrowers.

                          Previously they only applied stress rates to potential borrowings. Now they apply it to all new and existing borrowings (even if your existing borrowings are at a 4.5% interest). This could potentially impact any existing interest only loan that is due to be rolled over - the Australian owned banks regulated by APRA are required to undertake a full credit reassessment at this time - and this could result in many on IO going onto P&I terms.

                          The change in debt service calculations has resulted in reduced borrowing power on the same income levels ...


                          Last edited by Chris W; 01-02-2018, 03:29 PM.

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                          • #14
                            thanks chris - very helpful.

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                            • #15
                              You can see how your position can turn under this type of scrutiny. Such a hard line. Does this mean that just shut the door on 90% of investors out there? I would imagine not too many could keep borrowing under these rules. Opens the door up for FHB's.

                              FH
                              "DEBT BECOMES IRRELEVANT WITH INFLATION".

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