A WA broker wants legislative change to prevent discrimination against older borrowers.
Finance Solutions' Ray Weir has written to Treasurer Wayne Swan bringing attention to the fact that older borrowers over 55 are still being neglected due to the introduction of NCCP.
Weir said that borrowers in this age bracket applying for 30-year loans are finding difficulty due to lender interpretations of NCCP requirements, which prevent them from granting a loan if it is likely to cause financial hardship at any time in the future.
"For example, retirement when there is insufficient superannuation - at today's date - to fully repay the proposed home loan - at a future date," he explained.
Weir said that lenders were not accepting details which could verify a borrower's ability to repay.
"A borrower's written declaration that they will sell the property if ever they retire and can't otherwise repay the loan is unacceptable to lenders," Weir said.
Weir told the Treasurer that this age discrimination should be overturned at a legislative level.
Locked out borrowers getting really angry