Eyes on you, continuing surveillance of interest-only home loans

Prepared by Julia Winzar

Are you a lender or mortgage broker? Following is some important info for you!

If you are a lender or mortgage broker you should be aware of ASIC’s continuing oversight of responsible lending practices in the home loan sector.

ASIC has announced that it will commence targeted surveillance to identify whether lenders and mortgage brokers are inappropriately recommending more expensive interest-only loans to borrowers. This surveillance initiative comes off the back of ASIC’s recent review of the responsible lending practices of mortgage brokers in respect of interest-only home loans.

The targeted surveillance will involve the collection of data from banks (large and other) and non-bank lenders and identification of lenders and mortgage brokers that are recommending high numbers of more expensive interest-only home loans.

ASIC’s key concern is to ensure that lenders and mortgage brokers are not recommending unsuitable interest-only home loans to their consumers.

If you have any questions from this update please feel free to contact our credit expert, Julia for a no obligation chat.

julia@kitlegal.com.au