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Not notifying the lender on change of circumstance.

Discussion in 'General Property Chat' started by Dylan33, 10th Mar, 2016.

  1. Dylan33

    Dylan33 Well-Known Member

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    What's the probable action a lender would take if one was to conceal ones change of circumstance? I,e still keeping up serviceability requirements etc but change of or cease of employment . Or spouse becomes higher earner?
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    No need to update them at all, I would have thought. Geeze in a 30yr mortgage period you might have had 3 kids, been on maternity leave and changed careers 7 times. I don't think they're interested if you keep up the repayments.
     
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  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Stuff changes in peoples lives all the time, for better or worse. If you believe you're going to get into trouble making your mortgage repayments, talk to the lender and they might be able to put some things in place to help. Otherwise there's no reason to keep lenders appraised of every event in your life.
     
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  4. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    What about knocking down a dwelling before a development.
    Who bothers notifying for this, as usually the house value is minimal.
     
  5. Redom

    Redom Mortgage Broker Business Member

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    Not unless it happens before the settlement of a loan.

    You don't need to make the bank aware of everything that changes during your loan contract period.. Banks do incorporate some buffers in their calculations, particularly for variable sources of income. The purpose of these prudence measures is to ensure that repayments can still be met in different circumstances.
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    That's a bit different to changing jobs. If you're changing the fundamental nature of the property, you need to inform the bank.
     
  7. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    If house is security, you must notify the lender