Credit law changes hurt best-quality borrowers most

Thu, 03 Mar 2022

Low-risk borrowers are being worst affected by the changes to the Credit Contracts and Consumer Finance Act changes which kicked in from Dec 1.The latest data from credit reporting company Centrix showed the percentage of mortgage applications approved fell to 34% in February from 40% in October last year.Only 28% of applications for consumer finance were approved, down from 35% in October.Centrix said the October data is a cleaner point of comparison because the Reserve Bank tightened loan-to-valuation ratio restrictions from Nov 1."It...

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