Quote Originally Posted by SBQ View Post
That's not entirely true. As I said before, the primary indicator is how you're going to pay it back. In the case of a mortgage ; they're so critical to the house you're buying that quite often they won't accept any building inspection report. Some banks require their own vetted building inspectors but the overall critical factor is the house "must be INSURABLE".

Now take the same funds and buy shares? Show me where brokerage accounts in NZ are insured? Are the share investments insured? Nope - even cash in NZ banks have no depository insurance like the US & Canada have.

Anotherwords, all the equity you have means nothing to the bank if you have no income. Even pension income is not factored in because they look at your age. I'll have to say age is a bigger importance than the equity itself.
Which bit is not entirely true?
That they don't really care what you do with the money?
That they want to know how you will pay the mortgage back (wages etc)?
That they want to know that if you don't pay it back they have sufficient security over a suitable house?

Maybe my post wasn't clear - by adequate security I was meaning a house (one suitable to the bank (insurable etc)).