NAB now checking council records for loan purpose

Just a heads-up that NAB is now checking Brisbane City Council records (and maybe other councils throughout Australia) to check eligibility for investment vs home occupier loan interest rates.

So if you used to live in your PPOR, and it then becomes an investment property -- soon as council changes your property purpose (so they can send you higher rates of course), you will soon after get a notification from NAB they are changing your rates to the higher investment ones.

The why and how of the legalities of the banks and council sharing records is another thing, but anyhow, I guess you can't really complain.

 

how do you know?

 

Well happened to me of course.. was within a few days of the council update.

 

Councils are prevented by law from sharing information for other than the purpose for which it was collected (related to privacy).

Councils are very strict about this and it's a really big deal to get it wrong. I can't believe it is different in QLD?

Gman65 - I suggest you call your Council ( or better still, write) and ask about this.

It is possible that the bank has another source, but I can't see what that would be.

 

This doesn't mean NAB are calling up councils to check on the status of the property rates!

 

The new house your living in now, is that financed? Who gave you the mortgage for this one?

 

Different financier.. Somebody is sharing something! otherwise don't quite know how the bank found out. Only thing recently has been the council change. Like I said a few days later I received the NAB letter.. seems like a very timely co-incidence.

It has been many months since the move.

 

Why would you change the "purpose" of the property with council? I've never heard of this before - is it a Qld thing?

 

Did you change address for bank correspondence?

I went to the bank this morning and then it rained - but they aren't connected I am sure.

 

Not quite sure how I would word something like this "hey I'm peeved because somebody told the bank the change of property status to the correct one, and the only ones I can think of may be council".. like Terry said it is possible there is some other source, maybe its just all flowed through to all the organisations at a similar time.

 

They charge you a different set of rates whether its an investment property vs a ppor. It may just be a Brisbane thing? Not sure.

 

I had a client contact me this month regarding a letter they received about NAB trying to change their owner occupied loan to investment. The loan was for their beach house and when we did the application we did not use any rental or negative gearing and it was coded owner occupied.

I suspect they cross reference the residential mailing address with the security address which is what STG currently do.

 

Did you advertise it for rent on realestate.com.au or Domain?

 

You're not in Sydney then?

 

Woah woah so councils charge more if the property is rented vs owner occupier? Damn where do I notify mine for the discount...

 

So they caught you? You got NABbed!

 

You need to get to know your bank... CBA have one of my investments properties as OO and 4.40 IO rate.

They not dare change it.

 

@gman65 : I wouldn't be surprised. Everything is linked up nowadays, especially with the tax office. Banks are also linked to gov database, as bank interest is auto prefilled in online tax returns.

I would think the ATO / Councils / Police and other gov agencies are all linked up now. Just like how Centerlink knows exactly when you exit and reenter the country by sharing info with DIBP(immigration).

 

Only in QLD