Mortgage barrier

Alas, the papers have come through with right kinds of stamps. It’s been a year-long wait and my parents and I are full of hope now that the house is finally a reality.

Then, already another obstacle. Mother and I went to a local bank to set up mortgage (she had to be there with me because the plot of land was hers). The lady at the bank was very kind and nice. We didn’t really think any oddity would prevent my application from being successful. But it didn’t go down well in fact. A phone call after three weeks said no.

As a rule, banks do not tell you the reason for rejections. Apparently, you could go about making them legally disclose information. But I don’t have time for that at the moment. I urgently need to find mortgage somewhere if not with this bank.

It turns out that there are so many restrictions on loans. One major thing is that you have to be the owner of the house and live in it. Yes, I am going to be the owner of the house alright, but realistically I am not going to be living in it for a while now. And in the meantime, my parents will occupy the house. Banks don’t like it.
The land is registered for cultivation, and a section will be converted to residential but only when the house on it is complete. My advisor said perhaps the land had too low a value to set against the mortgage. But of course, it is cultivation land, which is by far undervalued than residential lands.
Some banks advertise that the loan can be used for the house to be lived in by you or ‘your family.’ This is it! But on the phone, I was told that “the family” must be living with me under my roof to be considered for a mortgage application… Bollocks.

It is a steep learning curve for me. I am learning quite a lot about financing. Doubting whether this is going to add anything to my life, but things have to be done.

If only prince charming would turn up one day and say “hey, here’s the money for your house. Don’t worry about interest. You can pay me back whenever you can and no rush.”

Now back to reality, and the search continues…

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About Dr Kats

a working sociologist/linguist/translator based in Odawara, Japan
This entry was posted in English entries, My (parents') House Project. Bookmark the permalink.

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