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'The computer says no' to older borrowers

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Australian Broker | 27 Jun 2012, 05:00 AM Agree 0
Brokers have flocked to the Austaralian Broker Online forum to detail numerous experiences of older borrowers being knocked back by the banks
  • Moonae | 27 Jun 2012, 09:41 AM Agree 0
    One of the bigger banks has a policy that says anyone over 46 years of age has to show an exit strategy (and a very onerous and specific one at that). it starts quite early. The fact that actual age is used as a basis of policy (and I can promise it is in black and white) is an age discrimination. No one is going to do anything about it though because its the major banks. The law doesn't apply to the majors.
  • alex | 27 Jun 2012, 10:00 AM Agree 0
    i had the same thing happen to one of my clients he was 55 years of age , wage was 220k .was selling his house to build a new home for the last time and i took me 4 month to find a lender and get it over the line .
  • Allan Faint | 27 Jun 2012, 10:32 AM Agree 0
    I had commented about this months ago quoting the name of a bank who had obviously used age as their reason for the knock back. I then received a call from a very upset BDM who had been instructed to inform me not to do it again. I was basically told that I had no right to have an opinion regarding this.
  • phil.gt3 | 27 Jun 2012, 10:33 AM Agree 0
    I quote from above; "Classic example is a client of mine who is 56 and has a very high salary. Lives in a 9 bedroom 5 bathroom home in Sydney. Property is worth $2.7M and wants a $1.1m refinance. Nobody will do it," he explained. I suspect there is more to this scenario that we are not being told! I think there would be 50 or 60 competent brokers just ready to take the referral and get the loan set! Maybe I am wrong! It could be a good case study for the diploma!
    I quote from above; "Classic example is a client of mine who is 56 and has a very high salary. Lives in a 9 bedroom 5 bathroom home in Sydney. Property is worth $2.7M and wants a $1.1m refinance. Nobody will do it," he explained. I suspect there is more to this scenario that we are not being told! I think there would be 50 or 60 competent brokers just ready to take the referral and get the loan set! Maybe I am wrong! It could be a good case study for the diploma!


  • Alex | 27 Jun 2012, 12:39 PM Agree 0
    Several clients of mine (60+ years) in western sydney, simply wanting to refinance amounts in the $300K, low LVR's <80%. The loan terms have to be 15 years is justifiable but the banks and they can service and the banks stillw ont do it or the client needs to have another property besdies selling own home as exit strategy.
    Today these clients live longer, work longer and wnat a better deal. It is not simple.
  • Broker - 14 Years | 27 Jun 2012, 01:05 PM Agree 0
    John Robbo ... If the Exit Strategy "Sale of the property prior to retirement" is the sole reason for the decline of this finance application please feel free to contact me ASAP as I have access to Banks / Lenders who will accept this as a satisfactory exit strategy.
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