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‚ÄčLenders hit back at age discrimination accusations

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Australian Broker | 28 Jan 2014, 06:49 AM Agree 0
The majors have slammed claims older borrowers are being unfairly denied credit, claiming policies are in place to protect borrowers.
  • MJL1959 | 28 Jan 2014, 09:12 AM Agree 0
    Just been through this exercise with NAB. I'm 54yo (plus I worked for them for 30 years) and despite being a client of 30+ years with no defaults ever was told that under current credit criteria I did not qualify...."as a responsible lender we require you to repay your loan before 65yo which we see as your retirement age." No flexibility... so bye bye NAB. $450k in loans and $400k in super is going elsewhere and at a lower loan rate!
  • talk is cheap | 28 Jan 2014, 09:27 AM Agree 0
    ANZ don't; but all the others do. No amount of spin will change the black and white facts. Yet government regulators turn a blind eye; in 5 years time we'll get the usually "we weren't aware they were doing that' speech.
    Latest example, upon being declined on age, caused family tensions that spilled over & led to divorce, & fire sale of assets - reducing clients 30% equity to around 10%. Clients now have little equity, and fewer prospects - but I guess they say that's 'in the clients best interest'. Try telling them that.
  • Frank | 28 Jan 2014, 09:34 AM Agree 0
    Sucked in NAB. Morons.
  • Stewart | 28 Jan 2014, 09:45 AM Agree 0
    On this matter the Banks are full of CRUD!

    I also had a problem with NAB a couple years ago.

    Parental guarantor. Parents were 55. Their home value $600k, debt $100k. Guarantor amount $80k. Both parents on $80k+ pa. (both Public servants 10yrs+, PSS super value over $400k) and he had 2 Defence pensions (UK & Australian) - for life.

    They wanted an exit strategy for the parents for 10 years time.

    The stupid idiots at NAB couldn't even calculate that in 10 years the debt would've been gone by natural payments and the guarantor amount would've also been gone in about 4 or 5 years when the property of the kids had gone up sufficiently in value and the kids loan naturally reduced sufficiently.

    Blatant rubbish from NAB!
    Blatant Discrimination by NAB!

    I do NOT do NAB loans now, purely because of that example.

    Also have a Westpac one where mother & daughter buying together. Mum 58, daughter 32. Mothers debt half the daughters. In 7 years the mothers loan would've reduced sufficiently that the daughters income would More than cover the remaing payments if needed. Also, these types of scenarios are "supposed" to be based on the younger persons age and not have to worry about the older person.
    But they put these people thru the ringer.

    Sorry, but the lenders are just plain STUPID when it comes to age discrimination.

    They really have NO Idea of reality Nor do they care about it. They are protecting themselves from something that "might" happen.

    Strangely enough, the older people are probably the ones LESS likely to default or do something wrong.

    Banks/Lenders:- Time to get a Brain!


  • Country Broker | 28 Jan 2014, 09:47 AM Agree 0
    As I said when this first started the ANZ are the only one who have a reasonable policy , Kane can bleat all he like they are discriminating, it is that simple , so are the other majors. good reason why the ANZ is my 1st preference in most cases. The CBA can say they have the biggest market share Biggest is not always best we do nit need to be reminded by Sam Boer of the lending 101 principals .
  • Jerry Gibb | 28 Jan 2014, 11:17 AM Agree 0
    Agree witht he comments above they can hide behind responsible lending up until the last few years applicants who were over 50 yrs of age were given loan terms of 30 yrs suddenly the new era came in and we start to say 65 or 75 yrs was the norm and terms could not be extend beyond that. What happen to the cases before responsible lending I ask you?
  • Greg | 28 Jan 2014, 02:14 PM Agree 0
    Perhaps if the lenders would stop using offshore assessors we might get assessments where the varying shades of grey in an application can be looked at. Everything is not black and white. Unfortunately with offshore assessing (Mumbai for ANZ was my last one) the assessors won't use what I would call a common sense approach which leads to delays and additional stress for the applicants.
  • marty mcdonald | 28 Jan 2014, 07:17 PM Agree 0
    Sorry but have to agree with the lenders here. While they may be too rigid "sometimes" I feel often they are just making a hard but correct decision. We should all be very careful giving advice on highish LVR loans with 30 year terms to people in their late 50's and into their 60's who have little in the way of other assets.
  • Mrsskybum | 21 Feb 2014, 01:47 AM Agree 0
    No they don't discriminate and the pope's not catholic either. All they are doing is making it harder for people my age (45 and above) to Buy, upgrade, refinance or invest. What is this Nanny country coming to when certain scamming people (M Worthingham) can't be stopper but borrowers can be!!!!!!.
  • Mrsskybum | 21 Feb 2014, 01:48 AM Agree 0
    No they don't discriminate and the pope's not catholic either. All they are doing is making it harder for people my age (45 and above) to Buy, upgrade, refinance or invest. What is this Nanny country coming to when certain scamming people (M Worthingham) can't be stopper but borrowers can be!!!!!!.
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