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An easing of the CCCFA to qualify for a loan

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  • An easing of the CCCFA to qualify for a loan

    Soon Lenders won't need to know about your daily spending and variable expenses like Netflix subscription and gym membership. This will be a huge relief to home buyers and mortgage brokers.

    Plus there may be more revisions too as the review into the CCCFA is ongoing.

    Shame this didn't happen earlier as many FHBs have missed out on securing properties. On a brighter note for them though - property prices are dropping and sellers are realising they need to reset their price expectations.


    The changes to ease CCCFA lending rules include lenders not having to use current spending as an indicator of future spending.
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  • #2
    CCCFA Updates - March 2022:

    I think we all let out a sigh of relief when the government agreed that the CCCFA had resulted in unreasonable requirements on both mortgage applicants and the banks. Some of you may have been affected by this first-hand, with your application rejected due to the amount spent on Uber Eats or a one off shopping spree to renew your wardrobe.
    But what has the government actually promised to do to fix this?
    They've announced that they will:

    Give banks specific guidance on what constitutes an affordable loan.

    Clarify whether banks need to take a detailed and narrow approach to reviewing current living expenses based on the applicant's recent bank transactions. This includes clarifying whether the requirement to obtain information in ‘sufficient detail’ relates to information provided by applicants directly, rather than information from bank statements.

    Remove regular payments into savings and investments as instances of 'outgoings' that lenders need to look into when determining affordability.

    We hope that the changes will reflect an important reality; a person's spending habits change once they purchase a property in order to accommodate the additional costs.

    Big nights out and luxury purchases reduce as necessary. This is the key point that the rules and guidance need to reflect and accommodate.
    It's all looking hopeful. But we know that the wheels of government turn slowly. So, should you apply for pre-approval in the meantime? Absolutely! We can help you identify how your situation stacks up under CCCFA, and either apply for pre-approval or put a plan in place to get your finances to the point that you can apply.


    • #3
      In my view CCCFA has no place in mortgage lending as there are already checks and balances in place. However unfortunately Mr Clark has another view and although there has been a tremendous backlash I don't see him caving in. On the bright side though a certain non bank lender does NOT require bank statements if the overall servicing is strong and under 80% LVR. Gotta love non banks, much more flexible and increasingly closer to banks in terms of rates.
      Financial Paramedics


      • #4
        Most first home buyers just go to their bank and if declined they give up - how can that be turned around?

        Is there a MFA - mortgage broker assoc. and a leader who can do the PR so more information is available to prospective homebuyers?


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