Not notifying the lender on change of circumstance.

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?

 

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.

 

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.

 

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

 

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.

 

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

 

If house is security, you must notify the lender