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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. Lenders are now very closely scrutinising borrower affordability and loan applicants have to provide much more background information. To discuss the tightening restrictions, Chief Executive Officer of Financial Advice NZ, Katrina Shanks, who warns that lifestyle choices may result in loan refusal.
And John Bolton from mortgage broking company Squirrel. He believes many borrowers may turn to lenders of last resort and he's started a petition to the Minister of Commerce and Commercial Affairs to get the new law reviewed.
