PHOTO: Michelle Winata
Michelle Winata wanted to enter the property market, but not get in over her head or be unable to travel while she’s still young.
Key points:
- ASIC has released updated guidance for banks, lenders and brokers issuing and recommending loans and products including credit cards
- Examples for lenders to consider include streaming subscriptions, school fees and work in the gig economy
- Karen Cox from Financial Rights Legal Centre says it’s important lenders don’t take a ‘tick the box’ approach
“I did want to maintain my lifestyle, and the holidays that I did choose were very budget,” she told the ABC.
A teacher from Western Sydney, Michelle has been able to save money by living with her parents, who were supportive of her property ambitions.
“My family all invests in property, my sister bought her first house when she was 18,” she said.
With the help of a mortgage broker, Michelle settled on a house and land package that would allow her to get a foot in the door without being overburdened.
PHOTO: Michelle is buying a house and land package that fits within her budget. (ABC News: John Gunn)
Michelle has no other debt burdens, low expenses and a full-time job, so she wouldn’t be considered a high-risk case, but her broker and her bank still need to make sure they are complying with responsible lending laws.
And that doesn’t just mean a simple calculation of income minus expenses.
READ MORE VIA ABC