Podcasts about credit contracts

A lender charging more than 180 percent on some loans has been ordered to pay a $200,000 penalty by the High Court in Christchurch. Eagle Man group was providing high cost loans in breach of multiple aspects of the Credit Contracts and Consumer Finance Act. The Commerce Commission, which took the case, said the majority of loans Eagle man issued were to customers who were already financially strained, including recent immigrants and people on temporary work visas. Commerce Commission Deputy Chair Anne Callinan spoke to Lisa Owen.

The Government has confirmed buy now, pay later providers will be able to charge whatever fees they want going forward. Cabinet has agreed to remove some consumer protections from the Credit Contracts and Consumer Finance Act (CCCFA) to enable BNPL providers to set late or default fees at whatever levels they wish. NZ Herald Wellington business editor Jenee Tibshraeny explains what this could mean for Kiwi consumers. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Government has confirmed buy now, pay later providers will be able to charge whatever fees they want going forward. Cabinet has agreed to remove some consumer protections from the Credit Contracts and Consumer Finance Act (CCCFA) to enable BNPL providers to set late or default fees at whatever levels they wish. NZ Herald Wellington business editor Jenee Tibshraeny explains what this could mean for Kiwi consumers. LISTEN ABOVESee omnystudio.com/listener for privacy information.

From today, strict loan affordability regulations are gone from the Credit Contracts and Consumer Finance Act, henceforth known as the CCCFA. This ends the bizarre inquisitions into your personal life the banks indulged in before denying you a loan. This is good news for first home buyers, obviously, but the people most affected were those trying to get smaller loans. The grilling you got to get that $5,000 you needed to fix a leak hopefully is over. The loan to value ratio rules have also eased, so again, good news for the first home buyers and investors. So how green are these green shoots in the housing market? Well, one report says that - 'home ownership for typical first home buyers has gone from being solidly in unaffordable territory at the start of the year to just marginally unaffordable in June'. Happy days- but still tough. Meanwhile, it turns out that first home buyers are increasingly buying townhouses. Townhouses made up just 6 percent of all new dwelling consents in 2012, now they account for 45 percent. And they are the obvious solution. Most of England is made up of terraced houses and townhouses, and so are most inner suburbs in Australia. They're grander than apartments. You're not sharing corridors and lifts with strangers. They're just like houses - only smaller. But in New Zealand, many don't like the idea. They've persisted with the dream that their immigrant parents had back in the 50s and 60s with stand alone houses and gardens and space and a dog.  But as our cities get larger we end up living in suburbs far far away from the centre, stuck in cars, growing congestion and not living the Kiwi dream. This new generation just wants enough rooms for a family and a tolerable commute. Many of us lucky enough or old enough to have the stand-alones have been standing in the way of intensification in our suburbs. But that has been standing in the way of a generation who want the choice. You may not choose to live in a townhouse, but you aren't 24 with a baby and a limited budget. I understand that an earlier paradise is being corrupted. But I also understand it was always inevitable. LISTEN ABOVESee omnystudio.com/listener for privacy information.

There's growing concerns from expert as the Government rolls back some restrictions needed to take out a loan. From today, The Government has removed affordability regulations from the Credit Contracts and Consumer Finance Act and updated the Responsible Lending Code. Money Sweetspot co-founder and CEO Sasha Lockley says relaxing these requirements means more people are at risk of getting into debt that they can't afford to pay back. "People believe what banks and finance companies tell them around affordability...and if you go to some of the bad actors in this financial system, they may say - yes, absolutely you can afford it, when actually, people can't." LISTEN ABOVESee omnystudio.com/listener for privacy information.

One expert has claimed there are upsides and downsides to the Government's changes to finance laws. From today, the Government is dropping prescriptive affordability regulations from the Credit Contracts and Consumer Finance Act. NZ Herald Wellington business editor explains whether these changes will make it easier on Kiwis looking to buy their first home. LISTEN ABOVESee omnystudio.com/listener for privacy information.

If you are looking for a loan, be it for a home or a credit card, there should be less hoops to jump through after the government has scrapped what it describes as "overly-prescriptive" regulations from the Credit Contracts and Consumer Finance Act. A more streamlined process to borrowing money may sound pretty good, but not everyone is convinced. 12-year-old Kiwi Nell Fisher is not only a great actress, she is also a bit lovely. We chat to the star of the upcoming film Bookworm, and Stranger Things S5! And Air New Zealand has abandoned its 2030 climate target. Why?

One expert has claimed there are upsides and downsides to the Government's changes to finance laws. From today, the Government is dropping prescriptive affordability regulations from the Credit Contracts and Consumer Finance Act. NZ Herald Wellington business editor explains whether these changes will make it easier on Kiwis looking to buy their first home. LISTEN ABOVESee omnystudio.com/listener for privacy information.

New Zealanders will soon be able to access finance with confidence.  From today, the Government's removing the affordability regulations from the Credit Contracts and Consumer Finance Act and updating the Responsible Lending Code.   Commerce and Consumer Affairs Minister Andrew Bayly says they're revoking 11 pages of overly prescriptive affordability regulations introduced by the last government.  He told Mike Hosking it had impacted the most vulnerable when they needed finance the most.  LISTEN ABOVE See omnystudio.com/listener for privacy information.

Questions to Ministers HON MARAMA DAVIDSON to the Prime Minister: Does he have confidence in the statements and actions of all his Ministers? STUART SMITH to the Minister of Finance: Has she seen any recent reports on tax? RT HON CHRIS HIPKINS to the Prime Minister: Does he stand by all his Government's statements and actions? DEBBIE NGAREWA-PACKER to the Prime Minister: Does he stand by all his Government's policies and actions? KATIE NIMON to the Minister of Education: What reports has she seen about the "away for the day" cellphone policy? HON BARBARA EDMONDS to the Minister of Finance: Does she stand by her statement, "We will be both sustaining front-line services and, in the cases of the areas that I outlined in my opening remarks, increasing funding for those services"? CHLÖE SWARBRICK to the Prime Minister: Does he stand by his Government's statements and actions? HON DR AYESHA VERRALL to the Minister of Health: Does he stand by his statement that "We stand by our commitments, that we won't be reducing the front line, that we will continue to deliver services as effectively as we can, and that the cuts that we're talking about are mostly back-office cuts"? PAULO GARCIA to the Minister for Disability Issues: What recent announcements has she made? TODD STEPHENSON to the Associate Minister of Health (Pharmac): What recent announcements has he made about improving Kiwis' access to medicines? HON WILLOW-JEAN PRIME to the Minister for Children: Does she stand by all her statements and actions? CAMERON BREWER to the Minister of Commerce and Consumer Affairs: What recent announcements has he made regarding regulations in the Credit Contracts and Consumer Finance Act 2003?

Financial mentoring services are worried the wind-back of lending regulations could expose vulnerable borrowers to loan-sharks, and more debt. Political reporter Giles Dexter has more.

The Government wants to make loans more accessible to people who need them. It's revoking 11 pages of the Credit Contracts and Consumer Finance Act introduced by the last Government. Commerce and Consumer Affairs Minister Andrew Bayly says vulnerable New Zealanders are being driven to gangs and loan sharks because the process takes far too long. He told Mike Hosking they want to allow lenders to give discretion in the right situation. “If you want to go get a $500 loan, and you're a solo mum from Blockhouse Bay, it takes at the moment about eight hours to process your loan; it used to take two hours.” LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Government's cutting more red tape in housing. They've announced changes to ease lending criteria for home and other loans, including reforming financial services and updating the Credit Contracts and Consumer Finance Act. The time it takes to process loans will lessen and mortgages will be easier to access. NZ Banking Association chief executive Roger Beaumont joined Mike Hosking. LISTEN ABOVESee omnystudio.com/listener for privacy information.

In this episode, we discuss National's pledge to revamp and rewrite the CCCFA (the Credit Contracts and Consumer Finance Act). This law saw first-time home buyers being denied a mortgage because of gym memberships, Kmart purchases, and their coffee addictions. But National wants to rewrite the law so more people can get a mortgage. But what does it actually mean, and why did the new rules come in, in the first place?

The coalition government's select committee banking inquiry could look at how to encourage banks to lend more to "productive" sectors of the economy rather than having such a big focus on "unproductive" housing lending, Commerce and Consumer Affairs Minister Andrew Bayly says.The National-NZ First coalition agreement says the government will establish a select committee inquiry into banking competition "with broad and deep criteria to focus on competitiveness, customer services, and profitability."Speaking in interest.co.nz's Of Interest podcast, Bayly said the government will wait to see what the Commerce Commission has to say in its market study into personal banking services before launching the select committee probe. The Commission's draft report is due on March 21."Why have we seen outflows from the productive sector like small businesses, farming and property development which is really important if you want to build houses in New Zealand? We've seen funding going out of that sector, going into what I would term the unproductive sector which is the mortgage market. That's interesting because it obviously has a big impact on businesses and the productive sector," said Bayly."Then there are things around margin [and] capital adequacy ratios that the Reserve Bank manages. That will help banks determine where they put their money, and whether they want to invest in more mortgages, or whether they want to invest in supporting businesses.""I'm approaching it with an open mind. I want to see where they [the Commerce Commission] have got to with retail [banking], but I think inevitably there's some other areas we want to cover," said Bayly.Under bank regulatory capital rules overseen by the Reserve Bank, banks are required to hold less capital against housing lending than against other types of lending such as business/corporate and agriculture lending. The major lending exposure of all NZ's major banks is housing. ANZ NZ, the country's biggest bank, has 72% of its total lending in housing.Bayly is also Minister of Statistics, plus Small Business and Manufacturing Minister.On Statistics NZ, Bayly said it will deliver the 7.5% annual spending reduction the government has asked for. Decisions and preparation are ahead for the 2028 census, he said, noting the 2023 census cost $326 million, "a lot of money.""I'm wanting to make sure that what we do drives economic growth for New Zealand, how we can power up those businesses. That's the big strategic intent," he said."Do you run another huge census every five years? That's the first question. And if you read the Stats NZ] briefing [to the incoming minister] there's a proposal that you don't run those big things again. Because governments all around the world are having the same issue where if you front up to someone now and say 'can you fill out this long form' most of them tell you to naf off," Bayly said.The next census could look to make more use of administrative data like home addresses or tax returns, he said, information and data that lies within various government entities."Obviously they've got to do it within privacy settings. But that is certainly the trend overseas and we will have to look at it.. that you may move towards more localised, small surveys, targeted surveys, and look to buttress that information using existing data sources that are potentially untapped at the moment."In the podcast Bayly also talks about Stats NZ reporting Consumers Price Index (CPI) data monthly, funding to update the CPI that's overdue, the Credit Contracts and Consumer Finance Act, the conduct of financial institutions (CoFI) regime, buy now, pay later, anti-money laundering rules, and his plans to rewrite the Companies Act.*You can find all episodes of the Of Interest podcast here.

Prime Minister Chris Hipkins believes New Zealanders will recognise the domestic and global factors that have contributed to two consecutive quarters of negative economic growth, considered a technical recession, when it comes time to vote later this year. Statistics NZ data released yesterday confirmed market expectations by showing the economy had shrunk in the first three months of 2023. Revised data showed GDP contracted by 0.7 per cent in the final quarter of 2022, worse than the 0.6 per cent recorded earlier. Hipkins, asked whether he thought the country being in a recession would lose him the election, said Labour could enter the campaigning period with a “proud” economic track record. “We've managed New Zealand's economy through a number of very challenging times in recent years, including a global pandemic, including an international spike in inflation and including the current economic turmoil that we see globally as well. “This is part of a global economic downturn, New Zealand's not immune from those things.” In a statement yesterday, Finance Minister Grant Robertson said he believed the Auckland floods and Cyclone Gabrielle were the chief contributors to the recession. Robertson said he was not surprised and was quick to reference how the “second-largest natural disaster to hit New Zealand” - Cyclone Gabrielle - had tested the economy's resilience. “[Today's] result reflects the impact of the Auckland Anniversary floods and Cyclone Gabrielle, with estimates of hundreds of millions of dollars of lost production and activity across agriculture, forestry, fishing, transport and manufacturing due to the extensive flooding,” he said. “We know 2023 is a challenging year as global growth slows, inflation has stayed higher for longer and the impacts of North Island weather events continue to disrupt households and businesses. “Looking ahead, export growth, the tourism rebound, returning international students, migration inflows and investment in the recovery mean the economy is well-positioned to handle challenging times. “Today's outcome fits the definition of a technical recession by the barest of margins. But the resilience of the New Zealand economy, including historically low unemployment, means it will not have the impact that would normally be associated with this term.” Opposition parties claimed the blame sits with Robertson, saying Kiwis' livelihoods are now under further threat amid “excessive inflation, high interest rates [and] a severe balance of payments deficit”. National finance spokesperson Nicola Willis said “red lights are flashing for the New Zealand economy”, which was now “incredibly fragile. “While the Government continues to make excuses, the data does not lie: New Zealand is now in worse shape than many of the countries we compare ourselves to including Australia, Canada and the United States, all of which have faced similar global challenges but none of which face the toxic economic predicament we now find ourselves in. “The simple fact is that Labour has mismanaged the economy and New Zealanders are paying the price. “This recession is a red-light warning: the time for cavalier big-spending, anti-business, anti-growth policies is over.” National deputy leader and finance spokesperson Nicola Willis doesn't buy Robertson's claim the recession was caused by the impact of the severe weather events earlier this year. Photo / Mark Mitchell Act leader David Seymour dubbed Robertson's approach to paying for cyclone and flooding costs as an “Afterpay economy. “Today's GDP figures mean that even with Grant Robertson irresponsibly putting the economy on Afterpay with $7 billion borrowing this year, New Zealand has been unable to avoid a recession,” Seymour said. “It's buy now, pay next generation, but the economy is shrinking anyway.” He believed economic growth was being constrained by “too much regulation and red tape” - something Act had vowed to target through a new Ministry of Regulation. “Act will get rid of [regulation], whether it's [Resource Management Act] regulations making it too hard to use land and discouraging investment, productivity-sapping workplace relations laws making it impossible to employ staff, or banking laws like the [Credit Contracts and Consumer Finance Act] that make it too hard to get finance.” Taxpayers' Union Campaigns Manager Callum Purves accepted this year's severe weather events would have limited primary production, but said the Government needed to “shoulder much of the blame for this economic contraction. “New Zealand might have only just entered a technical recession, but without drastic and urgent action from the Government to rein in its spending, this situation may well persist for some time to come.” - Adam Pearse, NZ HeraldSee omnystudio.com/listener for privacy information.

Prime Minister Chris Hipkins believes New Zealanders will recognise the domestic and global factors that have contributed to two consecutive quarters of negative economic growth, considered a technical recession, when it comes time to vote later this year. Statistics NZ data released yesterday confirmed market expectations by showing the economy had shrunk in the first three months of 2023. Revised data showed GDP contracted by 0.7 per cent in the final quarter of 2022, worse than the 0.6 per cent recorded earlier. Hipkins, asked whether he thought the country being in a recession would lose him the election, said Labour could enter the campaigning period with a “proud” economic track record. “We've managed New Zealand's economy through a number of very challenging times in recent years, including a global pandemic, including an international spike in inflation and including the current economic turmoil that we see globally as well. “This is part of a global economic downturn, New Zealand's not immune from those things.” In a statement yesterday, Finance Minister Grant Robertson said he believed the Auckland floods and Cyclone Gabrielle were the chief contributors to the recession. Robertson said he was not surprised and was quick to reference how the “second-largest natural disaster to hit New Zealand” - Cyclone Gabrielle - had tested the economy's resilience. “[Today's] result reflects the impact of the Auckland Anniversary floods and Cyclone Gabrielle, with estimates of hundreds of millions of dollars of lost production and activity across agriculture, forestry, fishing, transport and manufacturing due to the extensive flooding,” he said. “We know 2023 is a challenging year as global growth slows, inflation has stayed higher for longer and the impacts of North Island weather events continue to disrupt households and businesses. “Looking ahead, export growth, the tourism rebound, returning international students, migration inflows and investment in the recovery mean the economy is well-positioned to handle challenging times. “Today's outcome fits the definition of a technical recession by the barest of margins. But the resilience of the New Zealand economy, including historically low unemployment, means it will not have the impact that would normally be associated with this term.” Opposition parties claimed the blame sits with Robertson, saying Kiwis' livelihoods are now under further threat amid “excessive inflation, high interest rates [and] a severe balance of payments deficit”. National finance spokesperson Nicola Willis said “red lights are flashing for the New Zealand economy”, which was now “incredibly fragile. “While the Government continues to make excuses, the data does not lie: New Zealand is now in worse shape than many of the countries we compare ourselves to including Australia, Canada and the United States, all of which have faced similar global challenges but none of which face the toxic economic predicament we now find ourselves in. “The simple fact is that Labour has mismanaged the economy and New Zealanders are paying the price. “This recession is a red-light warning: the time for cavalier big-spending, anti-business, anti-growth policies is over.” National deputy leader and finance spokesperson Nicola Willis doesn't buy Robertson's claim the recession was caused by the impact of the severe weather events earlier this year. Photo / Mark Mitchell Act leader David Seymour dubbed Robertson's approach to paying for cyclone and flooding costs as an “Afterpay economy. “Today's GDP figures mean that even with Grant Robertson irresponsibly putting the economy on Afterpay with $7 billion borrowing this year, New Zealand has been unable to avoid a recession,” Seymour said. “It's buy now, pay next generation, but the economy is shrinking anyway.” He believed economic growth was being constrained by “too much regulation and red tape” - something Act had vowed to target through a new Ministry of Regulation. “Act will get rid of [regulation], whether it's [Resource Management Act] regulations making it too hard to use land and discouraging investment, productivity-sapping workplace relations laws making it impossible to employ staff, or banking laws like the [Credit Contracts and Consumer Finance Act] that make it too hard to get finance.” Taxpayers' Union Campaigns Manager Callum Purves accepted this year's severe weather events would have limited primary production, but said the Government needed to “shoulder much of the blame for this economic contraction. “New Zealand might have only just entered a technical recession, but without drastic and urgent action from the Government to rein in its spending, this situation may well persist for some time to come.” - Adam Pearse, NZ HeraldSee omnystudio.com/listener for privacy information.

A mortgage broker is dismissing changes to new lending rules as too little, too late.The Government is further tweaking consumer lending regulations, after earlier changes blocked some borrowers from getting loans.Three changes are planned, including narrowing the expenses lenders have to take into account.But mortgage broker Sue Tierney told Kate Hawkesby it's not good enough.She says they're ignoring the issue of "buy now, pay later" loans.Tierney says the whole idea of the Credit Contracts and Consumer Finance Act was to protect the vulnerable, and it's just not addressing that.LISTEN ABOVESee omnystudio.com/listener for privacy information.

Hot on the heels of the Free Trade Agreement with the European Union, Gyles talks to Kathryn about the Government expressing determination to get one done with India, how feasible is that? Also, changes to the Credit Contracts and Consumer Finance Act changes come into effect on Thursday.

Whilst the Reserve Bank views the Official Cash Rate (OCR) at its current level of 2% as neutral in that it's neither stimulating nor constraining economic activity, the steep rise in mortgage interest rates over the past year means they are well past a neutral level and are unlikely to rise much further, mortgage broker John Bolton says.Bolton, founder and executive director of mortgage broker Squirrel Mortgages, spoke to interest.co.nz for the latest episode of the Of Interest Podcast.While the average bank two-year fixed mortgage rate, typically the most popular term with New Zealand borrowers, bottomed out at about 2.51% in mid-2021, it's now at 5.4%. This type of move leads to big repayment increases, or mortgage shock, for borrowers when they refix their mortgages. But Bolton says after the sharp rise in mortgage rates, he believes they are starting to peak."I don't think they're going much higher. We are going to go into a recession, and I think even in the last week or so you've started to see the swap [rate] market come off a little bit. I think the economy's going to come off quite hard and fast, and you're going to see those longer term swap rates [which influence bank mortgage rate pricing] come back a bit," says Bolton."We talk about the OCR being neutral at 2% but we are not neutral, we are way past neutral at the moment. Because the Reserve Bank has talked it up so hard that mortgage rates are already pretty much pricing in every [future] OCR increase. We've tightened incredibly fast. So it's not surprising that has flowed through to the housing market. I mean we shouldn't be surprised."The Reserve Bank is forecasting the OCR will peak at about 4% by mid-2023.It started increasing the OCR from its record low of 0.25% as recently as October last year."The OCR's going to go up but it's already fully priced into mortgage rates, so I think mortgage rates are going to start to stabilise quite quickly. We get this panic that runs through our market and everyone's like '[mortgage] rates could get to 8% or 9%'...Clearly no one could afford that. So I think that panic will start to dissipate when people start to see that interest rates are stabilising, they're not nearly moving as quickly as they have been. And that people just settle into the fact that, 'ok I've got to plan a future that says that mortgage rates are going to be hovering around 5% to 6%.' That's not the end of the world for most people and most people can adjust to that. So that will just gradually work its way through and people will get used to it," Bolton says."We're not seeing a lot of [mortgage] distress, I think we're starting to see a little bit. But the distress that we're seeing is probably people that just need to adjust their living expenses. Every generation goes through this."He does, however, see higher mortgage rates having a broad impact on the economy by reducing the discretionary spending of mortgage holders."The thing that I find with the higher mortgage rates is it's going to translate into the real economy really fast because about 60% to 70% of the housing market is fixed on terms of less than a year. So you're going to get a really rapid reduction in discretionary income. When you reduce discretionary income, you're taking it out of hospitality, takeaways, retail, domestic tourism. So we're talking about a whole lot of industries that have been through two years of pain already that are now losing their customer base really, really fast. People just aren't going to be eating out as much, they're not going to be taking those domestic holidays...There's an increasing part of the population that's thinking 'I've got to hunker down for a while'," Bolton says.In terms of house prices, Bolton estimates they are down between 10% and 15% from last year's peak already. "The media's going to be reporting that [falling house prices ] for at least another six to 12 months. I think most of the absolute change is already there in the market, [but] it's going to take a while to work its way through in the statistics," says Bolton."They [prices] are down 10% to 15% in absolute terms, I don't see them going much further. I think it will stabilise around that level. I think there will be vendors that just take their properties off the market, and there's not a lot of supply out there."Parts of the market, where there's still a supply-demand imbalance, are still holding up quite well, Bolton says, adding that the house price fall isn't as big a drop as seen in the prices of other assets."The S&P 500's down over 20% this year, the Nasdaq's down 30%, crypto's down 60%. The everything bubble's popping, [and] property has probably done comparatively well. Where else do you put your money?"In the podcast Bolton also talks about bank behaviour, cashbacks being offered to borrowers, the opportunity for non-bank lenders, the impact of December's changes to the Credit Contracts and Consumer Finance Act, comments from Reserve Bank Chief Economist Paul Conway that the tide may have turned on housing being a one-way bet, the residential property development market, and more.

Property expert Matt Ryan analyses a recent tenancy tribunal case from Dunedin, revisions to the Credit Contracts and Consumer Finance Act and how property is currently comparing to other investment avenues. LISTEN ABOVE 

In December 2021 the government made changes to the Credit Contracts and Consumer Finance Act that were designed to protect borrowers – but had consequences that saw reports of people being rejected for lending because they had takeaways too often, had too many streaming subscriptions, and even because they made regular investments. Earlier this month, the Minister for Commerce and Consumer Affairs, David Parker announced that the Government plans to make further changes to the CCCFA to help avoid these unintended outcomes. To understand where we are at with bank lending – and what the changes are designed to achieve – Jo Kupa, Kiwibank Mortgage Area Manager and Madeleine Allen, Mobile Mortgage Manager for Kiwibank joined The Spinoff's Simon Day on the monthly bonus episode of When The Facts Change, brought to you by The Spinoff Podcast Network together with Kiwibank. See acast.com/privacy for privacy and opt-out information.

Some hugely relevant data to cover off this week, and very timely, after the Government last week announced a few tweaks to the Credit Contracts and Consumer Finance Act. This followed a mini-review of the recent changes implemented on December 1, which appear to have impacted 'good' borrowers than intended or necessary. We've got just-updated CoreLogic Buyer Classification data for February, illustrating the greater impact on first home buyers as well as the February REINZ HPI data showing the broader impact on property values.Stats NZ rental data remains of interest, especially with the annual growth rate now slowing after peaking at almost 6% last year and Kelvin's economic data update covers off what to look expect this week when it comes to GDP data for Q4 and NZAC data for February.Don't forget to read and share Kelvin's 5 things you need to know and look out for an update to our monthly video later this week.Check out all our regular CoreLogic research insights at https://www.corelogic.co.nz/research-news and get in touch on LinkedIn, twitter @NickGoodall_CL or @KDavidson_CL or send us an email on nick.goodall@corelogic.co.nz or kelvin.davidson@corelogic.co.nz 

Banks say changes to lending rules will help with key pain points.The Credit Contracts and Consumer Finance Act took effect last December to help prevent predatory lending.The Government's conceded it had unintended consequences on all borrowers and is proposing amendments to fix it.NZ Bankers Association's Roger Beaumont told Andrew Dickens they'll help, but the law could still be improved.“I would describe them as a small step in the right direction. There's a lot more heavy lifting that needs to go on in terms of getting into the detail of these regulations.”LISTEN ABOVE

The government has hastily moved to ease its contentious lending rules that have been blamed for stopping people getting home loans. Consumer Affairs Minister, David Clark has just announced that practical amendments will be made to the Credit Contracts and Consumer Finance Act. The amendments come after banks and borrowers complained the rules were too strict and were leading to delays in processing loan applications and a growing number of people being refused credit. Auckland mortgage broker Bruce Patten from Loan Market spoke to Corin Dann.

Questions to Ministers NICOLA WILLIS to the Prime Minister: Does she stand by her statement in relation to Government housing policy that "we have to constantly make sure we are reaching those affordability goals for people", and does she agree with the 2022 Salvation Army State of the Nation report that states "the massive increases in renting costs right throughout Aotearoa is confronting. Housing affordability for both first-home buyers and those renting is extremely worrying"? IBRAHIM OMER to the Minister of Housing: What is the Government doing to increase supply of public housing in Wellington? Hon LOUISE UPSTON to the Minister for Social Development and Employment: How many more people, if any, received a main benefit for longer than one year in the December 2021 quarter compared to the December 2017 quarter, and what is the impact of any such increase on children in those households? Dr LIZ CRAIG to the Minister for COVID-19 Response: What recent announcements has the Government made on reconnecting New Zealand to the rest of the world? MATT DOOCEY to the Minister of Health: Why did he reject my call to urgently convene a young people's mental health summit in response to early signs of increased mental distress as a result of the pandemic, and what does he say to student Jiya Rana who said in response to my call, "It was actually good to feel acknowledged. It was the first time I felt it had been really addressed in this pandemic and it felt spot on with the conversations I'd been having with my peers."? SHANAN HALBERT to the Minister for Social Development and Employment: What announcements has the Government made about supporting Maori into employment, education, and training? MELISSA LEE to the Minister for Broadcasting and Media: Does he accept all the conclusions of the Sapere Report on Media Plurality in New Zealand; if not, why not? GLEN BENNETT to the Minister of Justice: What action has the Government taken to end harmful conversion practices in New Zealand? Hon MARK MITCHELL to the Minister of Police: Does she believe New Zealanders are safer under this Government than they were four years ago; if so, how does she explain the Salvation Army's 2022 State of the Nation report which shows violent crime has increased overall since 2017? DAMIEN SMITH to the Minister of Commerce and Consumer Affairs: What impact, if any, does he believe the recent amendments to the Credit Contracts and Consumer Finance Act are having on the ability of New Zealanders to access finance, and is he concerned about the wider impact of the legislation on the New Zealand economy? GREG O'CONNOR to the Minister of Transport: What updates has he seen regarding the Government's clean car package? GOLRIZ GHAHRAMAN to the Minister for Trade and Export Growth: Does he agree that New Zealand has a responsibility to help make COVID-19 vaccines accessible to everyone worldwide; if so, what work, if any, has the Government done with its trade partners to progress a TRIPS waiver to support equitable access for developing world nations?

The controversial Credit Contracts and Consumer Finance Act came into force from 1 December 2021. It has significantly changed how Kiwis gain access to credit. Ben Craven and Oliver Hartwich discuss the effects of the CCCFA with Lyn McMorran, executive director of the Financial Services Federation, a non-profit organisation representing New Zealand's responsible non-bank financial institutions.

How is the credit crunch biting small businesses seeking loans? Changes to the Credit Contracts and Consumer Finance Act (CCCFA), which were intended to protect borrowers from loan sharks, are now making it harder for some businesses seeking credit, not just for home buyers applying for mortgages. The latest figures from the New Zealand owned and operated credit reporting bureau Centrix shows it is far more difficult across the board to access credit under the new rules. Centrix managing director Keith McLaughlin tells Kathryn it takes longer, costs more, there's greater disclosure required and more applications are being declined. Also joining, co-founder of small business platform, Manaaki, Andy Hamilton.

New legislation has recently come into force, that is having a huge impact on first home buyers, and existing property owners. The Credit Contracts and Consumer Finance Act, or CCCFA for short, isn't a new concept, but the changes are. The biggest change is that lenders now need to assess your income, and spending habits, to decide if you can fund your mortgage, both now, as well as in the future. CHAPTERS: 01:29 What is the purpose of the new CCCFA changes? 02:33 What does the CCCFA have to do with payday loans? 03:54 How does the CCCFA changes impact first home buyer? 04:14 What should you do before getting a mortgage in 2022? 10:08 How does the CCCFA changes impact rental property owners with an existing mortgage? 14:04 Conclusion ►BOOK A FREE CONSULTATION HERE: https://calendly.com/ryanjmelton/free-consultation RESOURCES & LINKS: ____________________________________________ ►Register to learn from leading experts in KiwiSaver, budgeting, investing and real estate: https://moneyskills.co.nz/ ►Subscribe to the NZ Guide To Financial Freedom Podcast: https://link.chtbl.com/2qrW8KRB ►Subscribe to the Accounting For The Podcast: https://link.chtbl.com/1zwvrt6i ►Get a free copy of my book 'The Dirty Secrets Of The Financial Elite' & Subscribe to my Newsletter: https://govt.us3.list-manage.com/subscribe?u=030f8337ffda9c52e663e6d74&id=73c3b2ede0 ____________________________________________ FIND ME: ►Book A Free Consultation: https://calendly.com/ryanjmelton/free-consultation ► If you want to learn how to fund your income in retirement check out our company OnePlan For Retirement @ https://oneplan.co.nz/ ►Find me on Tik Tok: https://www.tiktok.com/@ryanjmelton ►On Linkedin: https://www.linkedin.com/in/nzpodcast/ ►On Instagram: https://www.instagram.com/ryanjmelton/

Changes to the Credit Contracts and Consumer Finance Act (CCCFA) regulations came into effect in December and the headlines this month have been dominated by anecdotal stories of issues they have created for consumers. The changes were put in place to protect borrowers from predatory lending practices, but critics warned even before they came into effect that they would lock people out of an already very difficult housing market. Associate professor Claire Matthews from the Massey University Business school has been keeping an eye on the situation and joins me now.

Welcome to the daily nugget, daily property insights across New Zealand, 7 days a week. 1 question, 20 minutes or less. Today's topic: CCCFA changes and impact to mortgage applications. Hosted by Lawrence Lotze and joined by Andrew Armstrong. For any details around Andrew please head over to his website: https://lighthousefinancial.co.nz/

Ngā mihi o te tau hou pakeha (Happy New Year) and welcome to the first podcast for 2022. Nick and Kelvin are back from their respective summer breaks and there's no time to waste, with the lending environment under particular scrutiny. Changes to the Credit Contracts and Consumer Finance Act (CCCFA) are hogging the headlines, but tightening of the LVR limits, bank introduction of debt-to-income limits and increasing interest rates will also be having an impact so Nick and Kelvin provide their take, off the back of all the latest lending and Buyer Classification data.REINZ' release for December data was also hot off the press prior to recording so the guys give their quick take on that prior to Kelvin wrapping the latest economic releases (building consents and filled jobs).The major thing to watch for this week is the Stats NZ rental index but everyone seems to have hit the ground running so there are plenty of other releases to be aware of. As mentioned here's Kelvin's now regular '5 things to know' about property this week.Note, for the next three weeks the podcast will be out on Tuesdays (navigating holidays and leave) before returning to the usual Monday afternoon release date from Feb 14.Check out all our regular CoreLogic research insights at https://www.corelogic.co.nz/research-news and get in touch on LinkedIn, twitter @NickGoodall_CL or @KDavidson_CL or send us an email on nick.goodall@corelogic.co.nz or kelvin.davidson@corelogic.co.nz 

The Credit Contracts and Consumer Finance Act (CCCFA) regulations, came into force this month with the intention of protecting borrowers, but they are being described as a nightmare locking many people out of the housing market.

The Credit Contracts and Consumer Finance Act (CCCFA) regulations, came into force this month with the intention of protecting borrowers, but they are being described as a nightmare locking many people out of the housing market.

Shoes, coffee, petrol, KFC.... Typically your bank statement is not the sort of thing you want people reading, but come December the banks will be doing just that - going through your statements - and judging you. From the 1st, under the Credit Contracts and Consumer Finance Act, banks are required to actively review your information in more detail before granting you a home loan - adding to the list of obstacles already in your way. Financial Advisor, Chris Rapson explains what's in store.

In this episode, we discuss the new responsible lending code, the Credit Contracts and Consumer Finance Act and what it all means for New Zealand property investors and property investment. We break down the legislation to highlight some of the quirks and discuss what you need to do in order to respond to the new rules. We also mention our upcoming property investment webinar, where we'll discuss how to plan out your portfolio. It's on 21st September at 7pm. Click the link to register.

In this podcast video, host Richard Edwards speaks with Financial Services Federation executive direct Lyn McMorran.We discuss the history behind changes to the Credit Contracts and Consumer Finance Act that will heavily impact dealers and how they transact finance and insurance products.This is also available as a video podcast - https://youtu.be/e0tFFSOlnbQThis story is also available in the September 2021 issue of AutoTalk magazine, available at AutoTalk.co.nz

A boom in the use of buy now, pay later products has prompted warnings of people falling into financial hardship and growing calls for the sector to be regulated. Buy now, pay later companies such as Laybuy and AfterPay allow online shoppers to buy goods on credit and pay off the balance over four payments. These types of transactions grew by almost half in the first quarter of 2021, compared to the same period last year. Nine to Noon has requested a copy of briefing document from the Ministry of Business, Innovation and Employment to the Commerce and Consumer Affairs Minister David Clark, warning that these products are making the accumulation of debt easy. These products don't charge interest to the consumer, rather retailers pay the provider. Because these products don't charge interest, they don't fall under the Credit Contracts and Consumer Finance Act. Consumer groups are now calling for the buy now, pay later industry to be regulated like other money lenders. The Commerce Minister is weighing up possible regulation. Kathryn speaks with Consumer NZ's head of research is Jessica Wilson and KPMG's head of banking and finance John Kensington.

A boom in the use of buy now, pay later products has prompted warnings of people falling into financial hardship and growing calls for the sector to be regulated. Buy now, pay later companies such as Laybuy and AfterPay allow online shoppers to buy goods on credit and pay off the balance over four payments. These types of transactions grew by almost half in the first quarter of 2021, compared to the same period last year. Nine to Noon has requested a copy of briefing document from the Ministry of Business, Innovation and Employment to the Commerce and Consumer Affairs Minister David Clark, warning that these products are making the accumulation of debt easy. These products don't charge interest to the consumer, rather retailers pay the provider. Because these products don't charge interest, they don't fall under the Credit Contracts and Consumer Finance Act. Consumer groups are now calling for the buy now, pay later industry to be regulated like other money lenders. The Commerce Minister is weighing up possible regulation. Kathryn speaks with Consumer NZ's head of research is Jessica Wilson and KPMG's head of banking and finance John Kensington.