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Lenders have mixed reaction to age

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Australian Broker | 25 May 2011, 04:00 AM Agree 0
Finance brokers are seeing diverse approaches and decisions from lenders when it comes to older age borrowers
  • Allan Faint | 25 May 2011, 12:58 PM Agree 0
    is definitley an issue. Bankwest recently knocked back a loan to two clients in their 60s. originaly loan was conditionaly approved until their age was noticed, then was knocked on the head. was told due to age the mortgage insurer would not consider. have tried with another lender and got the same response from lmi. client is paying as much rent as proposed loan would be. rent will continue to increase over time, where as loan would stay about the same. Clients have ongoing income not planing to retire nor do they need to. had planed if they got to old to run house, to sell. client rang LMI was told they would not have knocked back loan due to age, must have been the lender, lender told them is would have beem lmi. am wondering how now we are looking into the future with the resonsible lending criteria how a young couple yet to breed could get a loan. they will have huge changes to overcome, probably more than an older couple.
  • Lynne | 26 May 2011, 11:40 AM Agree 0
    Yes the Lenders are definitely marking against age.
    I have had to explain how several clients would be able to repay their debts at 65 and they were only 45 and 49. It is pathetic and is causing a lot of pain for clients who want to purchase an investment or a business or just upgrade. Typical of Govt interfering in something they dont think through properly.
  • Ozboy | 27 May 2011, 09:15 AM Agree 0
    Don't forget under NCCP you the broker are responsible as well. If you push and push and the loan is accepted and then something happens who do you think will be in the middle. Would/Could your PI support your decision? While I have no doubt lenders (or individuals) are having a hard time digesting all the changes we as brokers must never loose sight that we are all in this together now more than ever. If your loan submission notes can't support the loan (in the lenders eyes) how do you think ASIC or the courts would view it. Is your business/trail payment worth it?
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