Broker calls for age discrimination overhaul

by Mackenzie McCarty26 Jun 2012

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.

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  • by ozboy 26/06/2012 9:31:10 AM

    Good luck this is certainly one area of NCCP that needs some attention and sooner rather than later.

  • by John Robbo 26/06/2012 10:03:42 AM

    This badly needs looking at. Classic eg is a client of mine who is 56 & has a very high salary. Lives in a 9 bedroom 5 bathroom home in Sydney. Property is worth $2.7M & wants a $1.1M refinance. Nobody will do it. He wants to sell the home on or before retirement as it is massive & far too big for 2 retirees - but all lenders say that selling the property is unacceptable - even though he would have to sell the property if it was unencumberred because of its size. This polici is REDICULOUS!

  • by Allan Faint 26/06/2012 10:04:00 AM

    good luck, though I think the lenders are happy with being able to use the unsuitable criteria to avoid giving what could end up as short term loans (with less profit) to people.