Large bank slams shut after she has told a destroyed couple that they must STOP IVF treatment to qualify for a modest home loan
- Imagine that they had to choose between IVF treatment and a mortgage
- A mortgage broker from Queensland told the treasurer the story of the couple this week
- The Royal Banking Commission has led to tighter loans
A couple who were looking for a $ 600,000 home loan were told by one of the four major banks that they had to stop the costly IVF treatment if they wanted approval.
A Queensland mortgage broker revealed the pair's story to treasurer Josh Frydenberg this week.
"This is an unfortunate and extreme example of where bank customers are being asked to justify expenses of a truly personal nature," Frydenberg said The Daily Telegraph.
& # 39; This may not only unnecessarily contain the flow of credit, but it also seems highly inappropriate & # 39 ;, he said.
A couple looking for a modest home loan were told by one of the four major banks that they had to stop expensive IVF treatments if they wanted approval
A credit rating agency from one of the major banks advised the couple's mortgage broker in writing that they had to choose between taking expensive IVF treatments or being eligible for a $ 600,000 loan.
The ultimatum was eventually withdrawn after the broker fought on behalf of the couple.
Banks have become increasingly strict when assessing loans after the Royal Commission in the banking sector in 2018.
Data from the Reserve Bank of Australia show that the housing market loans grow by 3.3 percent annually – the slowest in more than four decades.
In a speech this week, the treasurer said he was concerned about the tightening of credit by banks in response to responsible credit laws.
"Common sense dictates that a sensible balance must be found because too restrictive application of these obligations can cause as much damage as an excessively lax," he said.
& # 39; It is in everyone's interest that the ambitions of hard-working families are not additional damage in this regulatory process. & # 39;
In response to the slowing down home loan sector, the Reserve Bank has increasingly reduced interest rates to record levels to encourage loans and a growth economy.
The ultimatum was eventually withdrawn after the broker fought on behalf of the couple
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