Change in circumstances
Question from Michael updated on 9th May 2017:
I own a house with 67% LVR and a mixture of fixed term and floating loans. I am moving overseas for two to five years and have just rented my house. Do I need to tell my bank about the change in my circumstances? Will it affect my ability to borrow or restructure my loan in the future?
Our expert Kris Pedersen responded:
As long as you pay your mortgage you should be fine. Borrowing might be more difficult once you are overseas with banks having become a lot more reluctant to lend to offshore borrowers in the last 12 months. Who you are with may also have an affect as some banks shave a large margin off to allow for exchange rate risk as well.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz