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FBAA chief executive Peter White described the review into interest-only home loans by ASIC as a "pretty good result for brokers and the industry".
“Human nature sometimes leads you to expect the worse but ASIC’s findings about owner-occupier interest only home loans paints a positive view of brokers and the way they look after customers,” says White.
“We know we have been doing terrific work looking after the interests of our clients and that shows with more than half of all housing loans now written by brokers and ASIC’s findings show nothing to suggest otherwise.”
But White agreed with ASIC’s findings that better documented proof of evidence to support serviceability calculations was needed.
“This is a bit of a wake-up call for everyone to be on their game and to think big picture when it comes to assessing the ability of a customer to repay not just for now but in the future,” says White.
“Brokers have to ask questions and keep digging and take into account the possible change in a customer’s circumstance. We have to always look ahead and ensure we maintain responsible lending practices when there is uncertainty over future income streams.”
