Bank Mortgage

PHOTO: Loan applicant: “Every single transaction was analysed and questioned.” Photo: 123RF

More stories have emerged detailing the effects of strict new loan changes, including one woman who was probed about her social life, her job and her spending down to the dollar.

Changes to the Credit Contracts and Consumer Finance Act took effect at the start of December, which require banks to break down applicants’ spending habits before approving loans.

The changes were intended to protect vulnerable borrowers from loan sharks, but many have found the new processes obstructive and unnecessary.

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One woman, who did not want to be identified, said the process for getting a loan was invasive.

She was seeking a loan of less than $10,000 to help with emergency medical expenses.

She went to ANZ, as it had the best rate for her, but was referred to a manager, who decided the loan was not affordable for her, she said.

Nothing but a superficial explanation was given for the denial.

In the past she had received a similar loan with no issue, despite being in a worse financial position.

Following the denial, she approached The Co-operative Bank for the loan.

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She had to break down her spending habits specifically, with the bank requesting explanations for deviations as little as $5.

The bank inquired into her social life, hobbies and how much she spent on parking.

“Sometimes I get my eyebrows waxed, I had to explain to him in-depth how frequently that happens.

“Every single transaction was analysed and questioned.”

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