{"id":30160,"date":"2021-01-19T06:11:16","date_gmt":"2021-01-18T17:11:16","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=30160"},"modified":"2021-01-19T06:11:16","modified_gmt":"2021-01-18T17:11:16","slug":"consumer-groups-warn-against-moves-to-make-it-easier-to-get-a-home-loan","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/consumer-groups-warn-against-moves-to-make-it-easier-to-get-a-home-loan\/","title":{"rendered":"Consumer groups warn against moves to make it easier to get a home loan"},"content":{"rendered":"

PHOTO: Access to credit is being examined by a Senate inquiry.\u00a0Photo:\u00a0Paul Rovere<\/span><\/strong><\/p>\n

Overhauling responsible lending laws while the value of new home loans is at a record high\u00a0will do more harm than good, consumer groups warn, creating a greater risk for borrowers and the economy while offering little reward.<\/p>\n

Plans to\u00a0unwind responsible\u00a0lending laws were announced by federal Treasurer Josh Frydenberg last September, in a bid to increase the flow of credit to households and businesses as Australia\u2019s economy looks to recover from the coronavirus pandemic.<\/p>\n

Since then, the value of new home loans has reached\u00a0record highs, despite ongoing economic uncertainty, with consumer groups pushing back against the proposed changes, which are now before a Senate inquiry.<\/p>\n

\u201cWe\u2019re seeing record loans,\u201d said Julia Davis, policy and communications officer at the Financial Rights Legal Centre.<\/p>\n

\u201cWe\u2019ve sold more loans in Australia than ever before in history \u2026 that doesn\u2019t tell me that we need to ease responsible lending standards,\u201d Ms Davis said.<\/p>\n

Along with CHOICE and more than 120 organisations across the country, the centre called on the government to save \u201csafe lending\u201d in an open letter to Parliament late last year.<\/p>\n

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