Banks want to ease lending rules for home loan borrowers | The Business | ABC News

Households with mortgages continue to feel the sting of previous interest rate rises. One in four calls to the National Debt Helpline in 2024 are from Australians who face mortgage hardship, including some who have been forced to sell their homes. Many borrowers are stuck in a mortgage prison and unable to refinance as they continue rolling off cheap fixed loans onto higher variable rates. Banks and mortgage brokers say the current lending laws make it challenging for them to assist middle and lower income households who want to refinance or get a new loan, while others are fearful any tweak to the current laws could result in financial turmoil. Horror stories that emerged during the Banking Royal Commission more than five years ago led to stronger regulations aimed at better protecting consumers, and caps on bonuses paid to bankers. But banking giant CBA is planning to increase the commissions it pays to its home loan bankers, and the CEOs of ANZ and NAB are calling on the government to consider easing lending rules. Consumer groups and some economists are warning against this, saying it's being driven by greed and could result in more people getting loans who cannot afford it, increasing the risk of financial instability.
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