tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, July 16th, 12:34PM

Mortgages

rss
Latest Headlines

Small CCCFA relief to relief to storm victims

The Government has moved to ease the impact of the Credit Contracts and Consumer Finance Act (CCCFA) on storm damaged properties.

Tuesday, February 14th 2023, 1:22PM

by Eric Frykberg

It has decided to provide an exemption from certain requirements of the CCCFA where an existing customer of a lender has suffered storm damage this month or last.

The exemption applies to credit offered to pay for remediation, up to a $10,000 limit and for a temporary period of up to 12 months.

Under the change, the lender will not need to comply with parts of Section 9 of the Act regarding overdrafts and home loans.

They relate to a lender making reasonable inquiries about whether it is likely that the borrower will make the payments under an agreement without suffering substantial hardship and whether a guarantor will be able to comply with a guarantee without suffering substantial hardship.

The exemption is subject to several conditions such as the lender being willing to provide hardship assistance to the borrower after the credit is provided if the borrower requests assistance.

This could include the lender refinancing the credit contract on affordable terms, granting interest relief, or reducing the debt owing.

This decision by the Government has not met with universal approval. The Financial Services Federation (FSF) is pleased the Government has acted swiftly to help suffering but says the plan has flaws.

“During consultation we made clear that home loans and overdrafts were not the most suitable products for the type of lending that people will need to help themselves get back on their feet following such a disaster,” said the FSF executive director Lyn McMorran.

“For many people, a vehicle or household item is their biggest asset. It is simply logical that products offered by non-bank lenders specialising in lending against household items and motor vehicles would be of greater use to people in these situations.”

McMorran said only people in the fortunate position of owning a home could be helped by the mortgage relief.

Furthermore, an overdraft was likely to be unsecured lending and therefore the cost of credit would be greater than that of a personal loan secured over the goods being purchased.

“The FSF will continue to voice its concerns with officials and hopes a more sensible outcome that ensures people who need assistance can get it will ensue,” McMorran said.

The Government made its change without fanfare at 5pm on Monday.

In contrast with the criticism by the non-bank lenders, the major banks support this initiative.

The New Zealand Banking Association said banks wanted to provide as much support as possible to people affected by the recent storms.

“The temporary exemption to some of the affordability requirements in the Credit Contracts and Consumer Finance Act will assist banks to speed up the finance application process for those who need it,” said its chief executive Roger Beaumont.

“Banks will be able to use the exemption and make decisions depending on the customer’s circumstances.”

Beaumont said speeding up the lending process would help customers in need.

“We appreciate the government’s pragmatic approach to this exemption.”

Tags: CCCFA

« Helping to scale the coming interest rate rate cliffConsensus reached on slight falls in inflation »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.74 7.74 7.09 6.95
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Lender Flt 1yr 2yr 3yr
Westpac 8.64 ▼7.49 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼6.89 6.75 6.39
Median 8.64 7.14 6.82 6.65

Last updated: 15 July 2024 11:47am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com