Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

NAB introduces restrictions for older home buyers

Notify me of new replies via email
Australian Broker | 01 Nov 2016, 07:00 AM Agree 0
The bank’s new guidelines for responsible lending have come under fire with some claiming the policy is discriminatory
  • Really? | 01 Nov 2016, 09:46 AM Agree 0
    Age discrimination isn't talked about; but it is rampant with banks - hiding it behind NCCP.
    Banks love 'responsible lending', as the implementers had only a vague idea of what they meant by it; hence banks can ban any segment of the market, introduce policies they would previously have struggled to justify - regardless of other laws - block anything they want......and pass it all off as their interpretation of responsible lending.
  • Ozzoid | 01 Nov 2016, 10:25 AM Agree 0
    Alternatively, there could be a simple clause added to applications submitted by 'over the hill' persons:

    "Funeral Insurance (provided by this bank) will be required to cover any outstanding balances (in case of future negative vital signs of the applicant)."

    Everybody wins. Sort of.
  • Marty McDonald | 01 Nov 2016, 10:46 AM Agree 0
    They are making the borrower prove they will have the capacity to repay the loan after retirement....big deal. So they should. It doesn't mean an elderly person with means cant get a loan. What I have a problem with is stupid income assessment policies that effect elderly borrowers such as CBA's where they wont take actual / historical dividend or investment income into account instead they take a very low assumed % return based on the shares / investments current value (a meager 2.25% pa of the value). Then they have the gall to shade this income by 20%! Stupid and unrealistic for share and managed fund investments. So a client with $2,000,000 in retirement savings held in shares is assessed as having income from that of only $36,000 pa by CBA. The actual figure with franking credits is more like $150,000 pa. Which of course makes a big difference to borrowing capacity. Devil is in the detail as always.
  • Papery | 01 Nov 2016, 11:18 AM Agree 0
    Boring.....we've been down this road before....Its called an exit strategy.

    The only difference here is that it appears that they will take into consideration the sale of the security (PPR). In the past you could promise to sell anything but the PPR asset to clear the debt.

    Cant wait to see the policy in action....& I agree with Marty in respect of the DSR on investment income.
Post a reply