Some borrowers have been surprised and a little put out by the fact that their loan now takes longer to work its way through the approval system. Here’s why.
The Anti-Money Laundering Act was passed in 2013 to clamp down on dubious transactions in New Zealand. Borrowers now need to provide proof of their identity with a passport or utility bill. There are heavy penalties at stake so the bank will thoroughly scrutinise your paperwork.
When we work with you we will go through the paperwork and help you prepare a strong application. The tricky part comes when the borrowers are using a trust or some other structure that doesn’t receive mail at an address. Another issue arises when people receive utility bills via a P O Box or work address.
These won’t be acceptable to the bank as proof of identity.
Your loan approval may be stalled while you change the address on your utility bills or rejig your trust arrangements. That’s a severe nuisance if you need to buy at short notice.
Here is one solution. Make sure you have a current passport and are receive at least one utility bill in your name at your residential address.
Line up your loan in advance – don’t wait until you find a property.
If you need help to get the right loan at the right time, get in touch sooner rather than later.