Applications dwindled despite unchanged loan success rate.
Reuters reported that ANZ Bank and NAZ have attributed slower growth in home loans to the ongoing crackdown on consumer credit checks.
“Most borrowers who previously would have qualified for a home loan continue to qualify for a home loan. But potential borrowers needed to verify up to 13 claims about their spending,” NAB interim CEO Philip Chronican told a hearing of parliament’s House of Representatives economics committee.
This was echoed by ANZ CEO Shayne Elliott, who said that tougher application of lending standards meant some borrowers would find it harder to borrow.
Although the home loan application success rate remained unchanged from a year earlier, application numbers have dropped n, added NAB CFO Gary Lennon
Consumer credit checks became mandatory in Australia in 2012.
Here’s more from Reuters.
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