LSB lending - a follow on economic discussion

More
13 years 6 months ago #23208 by max2
During the course of the thread life of mortgages for LSB, I got to hear about two people who (having dealt long term with their existing bank) had their accounts frozen for relatively minor issues that could have been sorted by a telephone call.

Knowing my own recent experiences, I wondered if Others think the normal ''day to day'' running of their bank and its view of their accounts had changed in recent times?

Do you think you would be able to borrow (again) to purchase what you have or do you think/know your bank would look differently at your request now?

I am being more of a sticky beak as to others recent experiences than anything else and wondered if anyone had been successful in being able to borrow funds in very recent times.
We lost our village house sale and I am not convinced it wasn't due to finance not be available for the amount the purchasers were seeking despite being given verbal advice that they could borrow the required amount.

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #331833 by jerry leadbetter
from both discussions with bank managers through my job, and also when we bought our house last year (upon moving from Auckland to Whangarei) the way the banks were with us have definitely changed.
When we first bought our house in Auckland, as first time buyers, in 2006 we only had a $10k deposit - approximately 3% of the sale price. By using a property from my mother in law as a bit of security we were able to finance the deal.
When we moved last year the amount that the bank would finance was smaller, meaning we needed more equity. We had to negotiate with them to get what we needed, even though we had 4 years history and my overall salary was increasing with the move. Payments weren't an issue.

It's not a mjor thing, but I definitely saw a different attitude from the bank - it was fine for us but can imagine people who had thought that they would be fine getting a certain amount when offers had been accepted being quite surprised when banks say no this time.

The bank guys I talk to through work are all telling me that borrowing conditions have definitely tightened, especially to low income or 1st timers, or to people with low equity. It's certainly not the free-lending attitudes of 2006-7.

2.5 acres in the winterless north. 4 suffolk ewes, 1 wether tenant, one enormous Chocolate Lab and a nutty cat.

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #331837 by DiDi
...which (Jerry follow on) got so many people in the proverbial and are the banks being penalised for their throw it at you mentality? Hell is like! The number of mortagee sales in Auckland is frightening and you know emotionally that those people bought their homes with pride and joy. How is it that the Banks are in no way accountable for this? You could argue that they will have lost money on some but they have been screwing the depositors to the bone as well. Their profits are?

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #331916 by max2
I too am concerned over the number of mortgagee sales continuing in the market Didi. I was stunned to hear on the news this week that the Reserve Bank was predicted to increase interest rates by 25 base points because ''we are out of the woods"'. Yeah right!

I wonder how the Bank treated the owners of some of these properties and what options were given?

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #331921 by GrantK

swaggie;318856 wrote: I was stunned to hear on the news this week that the Reserve Bank was predicted to increase interest rates by 25 base points because ''we are out of the woods"'. Yeah right!

It's only a guess Swaggie. Some commentators are saying that Bollard will leave interest rates on hold, but make no mistake, the first of the rate rises is not far away, in any case.

Because most banks are having to pay deposit rates much higher than the OCR to attract customers, any increase in the OCR will have little effect at first. However, if the OCR goes to 3% or more, it will start to affect floating mortgage rates, and "On Call" deposit rates. And if the OCR goes to 3.5% or more, you can expect fixed mortgage rates to start moving up as well.

The days of extremely low interest rates are now very much numbered, and I can only say "Bring it on" because the short term deposit rates have been abysmal (at about 3 or 3.5%) for the past couple of years. But for anyone with a mortgage, the opposite scenario applies :(

Live weather data and High/Low records for our farm at: www.keymer.name/weather

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #331922 by tonic
hi there,

as hard as it is to pay our mortgage at the moment, i still love our bank! we are with new zealand home loans and they are helpful and flexible. at times i have missed payments, and when i call them they are helpful and understanding.

i recently needed to borrow a bit more money and they have been very reasonable and good about it.

i remember when we earned twice what we earn now (i daydream about it sometimes!...) and when we visited our old bank it seemed like we should feel grateful that they had the time to see us let alone help us....

i will stay with nzhl for as long as i have a mortgage!

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #331925 by max2

tonic;318863 wrote: hi there,

as hard as it is to pay our mortgage at the moment, i still love our bank! we are with new zealand home loans and they are helpful and flexible. at times i have missed payments, and when i call them they are helpful and understanding.

i recently needed to borrow a bit more money and they have been very reasonable and good about it.

i remember when we earned twice what we earn now (i daydream about it sometimes!...) and when we visited our old bank it seemed like we should feel grateful that they had the time to see us let alone help us....

i will stay with nzhl for as long as i have a mortgage!


that is good news Tonic!

Our circumstances changed as well... things out of our control and things we thought we were insured for.... we have kept our heads above water but I have had a taste of recent banking experiences and let me say what they claim/records state to do isn't so, and why I worry for those already in the mortgagee in possession situations.

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #331928 by ccrk9
we have a small mortage on our place and our bank made it very clear 2 years ago that we could not borrow more despite a ton of equity and said that on our income we shouldnt have even been given the mortgage in the first place !! And we only wanted to top it up by $10k to the amount we origionally borrowed 6 years previously. Really annoyed me as we had been with the bank for over 20 years and never missed a payment on our previous property which had a large mortgage!!

I think we got the mortgage 6 years ago as the banking consultant knew us but of course he has since moved on and the new guy was lots tougher. So when we came up for an interest rate review we didnt drop our payments like everyone else did, and knocked 5 years off the term just to show them we were not "poor" and unable to afford it.

The greatest fine art of the future will be the making of a comfortable
living from a small piece of land. ~ Abraham Lincoln ~

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #331963 by Stikkibeek
Our bank has started to slap the fees back on transactions. I knew they were going to do it for "cash-out" transactions in shops, but I didn't expect it from cashflow machines that are tied to our bank. They are hitting us with 60c per withdrawal. Pretty rich when it's our money, not theirs. They already charge if you use a teller service. Perhaps we should charge them to deposit our money.

Did you know, that what you thought I said, was not what I meant :S

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #331965 by GrantK

Stikkibeek;318906 wrote: Our bank has started to slap the fees back on transactions. I knew they were going to do it for "cash-out" transactions in shops,...

How on earth can they do that, when you make a purchase as part of the same transaction?

How does your bank know how much is Cash Out vs. the Purchase Amount?

Stikkibeek;318906 wrote: but I didn't expect it from cashflow machines that are tied to our bank. They are hitting us with 60c per withdrawal. Pretty rich when it's our money, not theirs.

It's time you changed banks. We don't pay any transaction fees at all with Kiwibank, and never have [8D]

Live weather data and High/Low records for our farm at: www.keymer.name/weather

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #331968 by beedee
I pay nearly $10 month and have no other fees.. when I had a big mortgage I was considered a good customer and the fees were deducted, now I have paid that off, I am considered poor and have to pay the fee rate!!! now money and I dont get on, but that seems totally backwards to me..
and when ever you have dealings with a bank certainly pays to challenge them, seems most can remove the transaction fee, they are mostly all optional add ons.
I think bank management [not workers] and investment firms with realtors would win the least trustworthy prize !

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #332005 by ccrk9
I was annoyed the other day as I needed to bank some cash - no money machines in our area for our bank (National) and while we can use an ANZ money machine to get money out or do a transaction list we cant do deposits. The nearest National Bank branches are Masterton (100km plus return to home) or Upper Hutt.

I rang the ANZ in Martinborough to see if they could do a cash deposit to my account - they said yes it could be done there BUT there was a few days clearance on the cash - the same as if it was a cheque AND it would be a $3 fee to process the deposit - as the deposit was only going to be $20 you can imagine what I told them to do!! Was bloody annoyed. Have the same problem if I want to bank cash or a cheque to my credit card - nowhere to do it.

The greatest fine art of the future will be the making of a comfortable
living from a small piece of land. ~ Abraham Lincoln ~

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #332007 by ronnie

ccrk9;318952 wrote: I was annoyed the other day as I needed to bank some cash - no money machines in our area for our bank (National) and while we can use an ANZ money machine to get money out or do a transaction list we cant do deposits. The nearest National Bank branches are Masterton (100km plus return to home) or Upper Hutt.

I rang the ANZ in Martinborough to see if they could do a cash deposit to my account - they said yes it could be done there BUT there was a few days clearance on the cash - the same as if it was a cheque AND it would be a $3 fee to process the deposit - as the deposit was only going to be $20 you can imagine what I told them to do!! Was bloody annoyed. Have the same problem if I want to bank cash or a cheque to my credit card - nowhere to do it.


Our local courier is happy to drop off deposits to the bank for folk. But I think they have to be in a fast deposit envelope as they don't have time to muck around in a queue. And I have heard they only charge about $2 for this service. Perhaps you could ask your local courier if they provide this service for their local customers???

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #332010 by ccrk9
I would have asked our old Rural delivery driver to do it as he lived in Masterton - but I wont ask the new guy (been on the job over 2 years) as he cant deliver my mail to me so I wouldnt trust him to get it to the bank...just had to complain about non receipt of mail yet again to NZ Post this last week....

The greatest fine art of the future will be the making of a comfortable
living from a small piece of land. ~ Abraham Lincoln ~

Please Log in or Create an account to join the conversation.

More
13 years 6 months ago #332011 by Simkin
Yep, definitely toughened up. If a house looks like it's a leaky home (built in the 1990s, no eves, plasterboard exterior) they don't seem to lend at all.

A friend of mine was told she could only borrow 50K to buy a 200K house with 100K in the bank - she's on a low income.

But I think that's just a glimpse of what may be around the corner - maybe much tougher economic times and even more people expected to loose their jobs.

Please Log in or Create an account to join the conversation.

Time to create page: 0.168 seconds