Mortgage decline rates set to skyrocket as responsible lending changes bite
Date 16 Nov 2021
The Government has made law changes to protect vulnerable borrowers that come into effect on December 2, but that will have adverse consequences for homeowners and especially first-home buyers.
The changes to the Credit Contracts and Consumer Finance Act will mean lenders have to apply more scrutiny to applications and conduct extra tests to determine whether loans are affordable for borrowers.
This is at the same time that first-home buyers are already facing new minimum deposit restrictions. Most lenders are implementing the changes ahead of the deadline and mortgage decline rates are increasing.
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