One of the consequences of the new legislation that now applies to home loan lending is that lenders are now introducing harsher criteria for applicants over a certain age. These include restricting the term of the loan, requiring evidence of superannuation and exit strategies for these clients and so on.

Whilst this may sound reasonable, one case that we have seen in the last month has been a first home buyer aged 41 who was initially denied the opportunity to repay her loan over a 30 year period and was being forced to have this repaid by the time she turned 70. This in turn increased the repayments that she would have had to pay but, fortunately, the lender did change their mind at the last moment.

The message very clearly under the new legislation is that the older you are, the harder it will be to borrow.

• No Related Post

Comments are closed.