Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Be clear how much you’ll pocket if selling property

Media release – 27 August 2014

Be clear how much you’ll pocket if selling one of your properties

Customers wanting to sell one of their properties to release capital should first be clear how much money their bank will let them pocket, said Banking Ombudsman Deborah Battell.

Following complaints from people who found their bank didn’t let them keep what they expected to clear from the sale of one of their properties, the Banking Ombudsman Scheme has issued a quick guide on selling property to release capital.

The Banking Ombudsman receives complaints for a variety of factors, including early repayment costs and legal fees, but particular problems arise when people own two or more properties that secure one or more loans.

“If a customer sells a property which is security for a loan, they usually keep the proceeds after the loan is repaid. However, this may not necessarily be the case when a person has an “all-obligations” mortgage and a number of loans.

“The bank must be satisfied it is left with sufficient security for its remaining property and other loans. This sometimes means the amount owing on remaining loans needs to be reduced with proceeds from the property sale, and this has been a nasty surprise for some customers,” Ms Battell said.

For example, the bank can require customers to pay off other debt rather than keep the money if:

• their financial situation has changed, affecting their ability to make loan repayments

• property values have dropped, as happened in the global financial crisis

• the bank’s lending criteria has changed since the loans were obtained, and the lending may no longer meet the bank's loan-to-value ratio (LVR) requirements.

The Banking Ombudsman Scheme has a range of property-related quick guides including:

Early repayment costs on fixed rate loans

Concerns about lending decisions

Residential loan-to-value lending restrictions

ends


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news