There’s a complaint I keep hearing. It goes like this:

“I’ve been a loyal customer for 30 years, but when I asked to change my home loan, the bank said no. What’s the matter – don’t they value me?”

Your bank probably does value your business, but the decision is out of its hands. Blame the Reserve Bank instead.

The Reserve Bank is the government authority that controls all banking in New Zealand. For several years it has been worried about levels of debt in the economy. To avoid a crash it has imposed tough rules on all lending.

As a result, your bank may have its hands tied when you apply for a new loan or a change to your existing one. It might not be able to grant your request for a switch to interest-only. It might turn you down for borrowing on a rental property, despite having lent large sums for your previous investments.

The solution is simple. Talk to us early.

If there’s a change in your life, such as going down to one income, make sure you let us know before things become critical. It may be possible to alter loan terms or make other changes, but we might need to consider a range of options. Don’t leave it until the last minute, and then get upset because your current bank says no.

There’s almost always a solution, but it may take some expert lateral thinking and restructuring. That’s what we’re here for.

Are you looking to change your mortgage or apply for a new one? Make sure you talk to us as soon as possible. Make an appointment.