10 March 2022

What the recent CCCFA lending rule changes mean for consumers

We explain some of the new Credit Contracts and Consumer Finance Act (CCCFA) lending rules, what they mean for consumers and what’s happening next.

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kwkiwi
11 Mar 2022
Consumer should look at how the legislation was drafted

I don’t think this is just the banks that are in the wrong with the interpretation of these new rules as your article is suggesting. Is it in fact poorly drafted and unworkable rules? I’ve heard that people who would have in the past got mortgage approval have now been turned down.

Is it in the interests of the NZ economy that liquidity has now dried up in the housing market? Is it a good thing if developers can’t get housing projects off the ground because of these new requirements? Of course if there is a $200k fine for a wrong mortgage approval then banks are going to err on the side of caution. Consumer should be calling the government out on this poorly enacted legislation that is having wide ranging effects on people just tying to go about buying or selling their family home.

I suggest you read Tony Alexander’s economic newsletter if you want to get insights of how this is affecting the whole housing and mortgage broking markets.