Mortgage

New Zealand woman’s urgent mortgage extension declined because of $176 Kmart purchase

New Zealand woman’s urgent mortgage extension declined because of $176 Kmart purchase
Written by Publishing Team

Despite paying off her loans without issue for 17 years, one trip to Kmart ruined this woman’s chances of getting enough cash for urgent repairs.

A New Zealand woman said a NZ$187 ($176) Christmas shopping trip to Kmart in Invercargill prevented her from getting a mortgage for urgent home repairs.

Kim Anderson Robb is one of the many people stymied by new changes to credit contracts and New Zealand’s consumer finance law, The NZ Herald reports.

The change, which was intended to protect vulnerable borrowers from loan sharks, means banks will have to crack down on applicants’ spending before they can approve loans.

Anderson Robb and her husband needed urgent repairs to their home in Dunedin, on New Zealand’s South Island, late last year.

It needed a full rewiring after asbestos was found in the fuse box, and the roof, which is the only way to get into the house, was “so completely rotten that we’ll probably fall into it soon” and need to be replaced, Anderson told Rob.

The couple said the bathroom was also in need of an upgrade.

The couple had a mortgage of $63,000 (A$59,000) and many years of business ahead of them. They wanted to increase the mortgage by $80,000 (A$75,000) to get the repairs done.

The 53-year-old applied to her bank, which she’s been with for nearly 20 years, but the loan was denied due to a trip to Kmart in Invercargill, a $100 (AU$94) deposit at the depot, and a credit card she said she hadn’t used. over a year ago.

The bank clerks also inquired about her husband’s daily trip to the dairy to buy a drink when he was at work.

I was “deeply shocked and frustrated” when the application was refused.

“We’ve had a mortgage for 17 years, never missed a payment, never asked for mortgage leave, so I’d say we’re a very good client,” she said.

Anderson Robb, an assistant worker, believed that she and her husband, who worked on a poultry farm, lived “in financial comfort”.

“We get good money but they turned us down because of a one-off trip to buy Christmas presents and a bloody drink.

“That’s stupid.”

She said Anderson Robb nearly gave up on a mortgage and the couple would have to save up instead.

The new rules were “incredibly tough” on homeowners and felt so for young people trying to enter the market.

“It’s just so hard and I really, really feel for them.”

Several people in similar situations commented on the Otago Daily Times’ report on Thursday’s rule changes.

Another Dunedin woman, who asked not to be named, said her mortgage application was turned down because she spent too much in restaurants.

She needed to extend a loan for urgent repairs to the roof of her house, and the combined annual income of her and her husband was 200 thousand dollars.

She said her bank, which she’s been with for nearly 20 years and had a mortgage during that time, told her they were spending too much on eating out and so they couldn’t lend her money.

It’s so absurd. Do they expect us to live like monks? “

The couple would spend three months watching “very carefully” what they spent money on, until they could go to the bank to try again.

“After those three months, we’ll go straight back to the restaurants, so what’s the point of that?” The woman said.

This article originally appeared in The NZ Herald and is reproduced here with permission.

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