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

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news