Can You Still Buy a Home with CCCFA in Place?
Channel: The Mortgage Lab
Date: 2022-02-22

In this video Mortgage Lab CEO Rupert Gough gives you an overview of the act, its impacts, and what you now need to do differently in order to get a mortgage.

"The act, called CCCFA for short, came into force on the 1st December 2021. It was largely meant to protect consumers from high-interest loan sharks. But unintended effects of the act have flowed into mainstream mortgage applications, for home-buyers, upgraders and investors alike.

So, what is the CCCFA? The act effectively increases the liability for the directors and senior managers of lending companies. They are now personally liable if borrowing is shown to be irresponsible or deficiencies in the lending process are found. A fine of up to $200,000 for each breach is possible. As a result, banks and other lenders have tightened their application process. They are combing through every small detail to make sure their process is correct..."

If you are unsure where to start or have any questions, don't hesitate to contact the team at mortgagelab.co.nz/contact-us, we're here to help.

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Our Video Chapters
0:00 - Can you still buy a home with the CCCFA?
0:35 - What is the CCCFA?
1:06 - Is having senior managers and director liable a good thing?
1:47 - How does the CCCFA change what lenders require?
3:21 - What is the bank statement timeframe that banks require?
3:42 - How does the CCCFA affect current home owners?
4:10 - Second Tier Lenders and the CCCFA
5:01 - Has the CCCFA gone too far?
5:47 - What is the solution?