Month: October 2014

Aucklanders feeling wealthier on the back of higher property valuations are being urged not to borrow more on what is essentially “paper wealth”. Kirk Hope, chief executive of the Bankers’ Association, said banks would be very discerning. “Just because a value increases doesn’t mean they will be able to borrow more,” he said.

Chief executive Kirk Hope said: “Size is among a number of factors that banks may take into account when looking at lending on apartments. When lending on small apartments the bank needs to consider if it will get its money back in case of default. It may not where demand for very small residences is… Read more »

Hope encourages borrowers to get in touch with their bank as soon as possible if their circumstances change. If they think they can’t make the payment then borrowers could go on a mortgage holiday or restructure the loan to stretch it out over a longer timeframe lowering the repayment levels.

The New Zealand Bankers’ Association says it’d like to see the Ministry of Justice, alongside the three anti-money laundering law enforcers, run a public awareness campaign to boost understanding of how anti-money laundering laws affect bank customers and the public in general.

Banker’s Association chief executive Kirk Hope said easing the restrictions would not be the end of the world and suggested loosening them from 10 percent to perhaps 15 percent might help flagging economic growth.

Bankers’ Association chief executive Kirk Hope said banks always recommended people protected themselves from online fraud by keeping their operating systems and security software up-to-date.

Bankers’ Association chief executive Kirk Hope said the banking sector understood that up to 30 per cent of sum-insured homes might be under-insured.