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Major foils age discrimination claims

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Australian Broker | 23 Apr 2014, 08:00 AM Agree 0
A 66-year-old who claimed he could not get home loan refinancing because of his age has had his human rights case thrown out of court
  • dpathle | 23 Apr 2014, 09:58 AM Agree 0
    Sadly, lenders are not taking age into consideration enough. Hopefully this case is an example to all of us getting close to retirement (or already in retirement) that there is no point having a debt that costs more each year than the asset it is over.
  • Bottom Line | 23 Apr 2014, 11:12 AM Agree 0
    “You can’t say ‘we’re not giving you a loan because of your age’ or ‘we don’t lend to older borrowers’, and you must not have a policy that says that. Instead, you have to consider each loan on its merits and in doing that you can take age into consideration."

    In other words, decline them based on age, but make up another reason....bizaare. Wouldn't that be perjury if Bank's then stuck to that ruse in court??
  • Gray Gray | 23 Apr 2014, 12:06 PM Agree 0
    Excellent to see a bank taking an ethical lending approach. To many people are not taking retirement plans into account for servicing loan.
  • Papery | 23 Apr 2014, 12:19 PM Agree 0
    I s'pose the fact that the article says he was already in financial hardship to the extent he had stopped making interest payments on his loan had nothing to do with the issues.....
  • Frank | 23 Apr 2014, 02:04 PM Agree 0
    Bottom Line - Jon Denovan is saying that we have a responsibility to educate customers around why their application for finance has been declined. Not make up a reason.

    Banks don’t decline a loan based on the age of a customer, they decline it becuase they will be older than the retirement age before the loan expires. IE why would you give a 66 year old applicant a loan with a 30 year term if they don’t have an exit strategy in place.

    Too many brokers and banks chose the quick option and don’t go into enough detail educating customers up front before they take an application.
  • Bottom Line | 23 Apr 2014, 02:53 PM Agree 0
    Frank - The lender approves the loan, not we Brokers. They give the reason for the decline, and he is suggesting even if it is age, don't relay that to the Broker or to the client as the case may be.
    Wont be long and I'll be asking clients to get medicals, as I cant be sure that someone who is 30 will live to 60.
    Even more interesting is that many banks use a different retirement age; which doesn't match the official retirement ages for men & women - as set out by the government.
  • Age Appropriate | 24 Apr 2014, 09:39 AM Agree 0
    Just makes me think -
    In the last few weeks we've been advised or reminded that the Retirement age will increase to 70 (ish) ...could be more over time.
    However, we won't be able to rely on that income or term of employment for a loan.
    That's if we can get a suitable job at that age or are capable of working both mentally and physically.
    And as of yesterday, should we fall ill....then that you are over 65 it may cost too much money to heal or cure you so may as will just let you die - regardless of your past or current tax paying income or private health insurance holding status
    Interesting world we live in !
  • Jason | 24 Apr 2014, 10:01 AM Agree 0
    Age appropriate - I have had loans approved for clients taking their age at loan expiry well past age 70. I think we need to be mindful of the industry/occupation vs income/debt levels. Easy to understand why a lender wouldnt approve a loan for a labourer with a loan term taking them past 70 vs a relatively easy approval for an office based worker with a clear exit strategy
  • Papery | 24 Apr 2014, 11:32 AM Agree 0
    There is no 'retirement' age....it is an eligiblity for a Pension Age.

    Makes it even more important to have a succinct exit strategy.

    I cannot understand why access to quality individualised & cost effective (if not free) life time financial planning/retirement advise is not part of the Govts edict given the current discussions around Retirement, Pensions & Super.
    This space is so difficult for most people to understand & by the time most half way intelligent people start thinking & planning (& panicking) its too late.

    For Joe average, its tough enough trying to earn enough to keep the average family going in todays economy, let alone squirrelling away another chunk for a retirement you may not live to see. And we all know that market movements giveth & taketh away.

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