Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Court ruling to tackle lender 'age discrimination'

Notify me of new replies via email
Australian Broker | 20 Feb 2014, 07:00 AM Agree 0
As brokers complain of unfair age-based policies by lenders , a recent decision should give clarity around lending to older borrowers.
  • Allan Faint | 20 Feb 2014, 09:25 AM Agree 0
    yet to see how this ruling will help someone in their 50's, (for instance, possibly self employed with minimal super, recently divorced with minimal deposit paying more rent than their home repayments would be) to get a home loan. as the lenders would think it is unsatisfactory to give him/her a loan.
  • TJA | 20 Feb 2014, 09:49 AM Agree 0
    I just enforces what most lenders are doing now so long as they can see an exit strategy they are fine.
  • The last one | 20 Feb 2014, 10:23 AM Agree 0
    The last one that was declined based on age; caused tension/rift between the husband and the wife, which led to a marital separation, and saw them sell off assets at lower than market costs to help end the relationship quickly.
    Both will now rent for the rest of their lives, and pay more per week than the mortgage would have cost (even if rates go up to 8%), Now have no assets, little cash, no equity, and no prospects.
    But this was all achieved by declining them on age under 'responsible lending' - no one will ever keep statistics on people affected this way.
  • Old Joe | 20 Feb 2014, 10:37 AM Agree 0
    How can mortgage brokers be responsible giving borrowers 40 year loans at 60 years of age because their super is short and they now have this hair brain that investment property will get them out of the retirement hole. We need more clarity and this article begs more questions than it answers. In EU its clear they lend money on the basis of your end date the retirement age like in the UK unless its exceptional circumstances.
  • Papery | 20 Feb 2014, 11:11 AM Agree 0
    Im with Old Joe....this is only half the story....who brought the case to the Courts in the first place & why??
    I expect some smarty pants who is trying to get the borrower out of their debt obligations by trying to foist the blame onto the Broker/Lender. At what point did the borrower become feeble minded & not know what they were doing? And I wonder how the business is travelling.

    Well played Court of Appeal!
  • Joe Siragusa | 20 Feb 2014, 11:25 AM Agree 0
    The unintended consequence of NCCP will see more age discrimination because it is the easy option to decline rather than investigate and determine what the primary and secondary exit analysis would be. I have seen instances where the "Credit Centre" declines on age without taking into consideration the overall wealth of the client and the liquid assets they hold that are more than ample to repay the loan without impacting on the family home.

    I bet there was no consideration given to asking the daughter to repay the loan or gift given by the parents. As usual its a case of going to those who have the deepest pockets.
Post a reply