However, ASIC also states that the law regarding "substantial hardship" will become clearer as cases come up before the courts and judgments are handed down. So from what I can gather, I would assume lenders would already have these benchmarks in place and it's business as usual, but ASIC is also saying to them watch this space, as things might change??.
regulations were. However, ASIC states on it's website that in Phase 2, Part 2
The big unknown relates to meeting "the additional regulations prescribed" by the government, which from what I've gathered have not been defined as yet, and once implemented may (or may not) change things significantly for the investor.
Ralf> I couldn't find within the legislation any mention of consistent savings being classified as a fixed expenditure? Given the Act was 516 pages long, I may have just missed it?
Anyway, I would be interested to get feedback from all you brokers out there as to whether I have interpreted the new Act right, or if I have missed anything. Also note, I've came at this from an investor's perspective, rather than from a broker's perspective, so have not mentioned the onerous burden on brokers to now prove that they have conducted "responsible lending".
as investors lisa its not business as usual for u and i as everybody is interpreting those 516 pages differently because it is so vague and yet to be tested by the courts, As tokenfunder said ASIC want a scalp and no-one wants to be that scalp so everyone is being cautious and so many things are just ridiculous. Like that example Rolf used of consistent savings being counted as an expense or having to predict children within a period of time, or what foxtel package etc, just crazy stuff.
so yes lenders and brokers had policies in place that worked but because of this crazy legislation it is not business as usual, until the legislation is tested all borrowers suffer including you on your investment journey, another Innocent victim of political grandstanding, making it harder to buy appreciating assets but if u want to buy a few hundred grand of furniture and cars on expensive credit go for your life, no protection there.
it's a bit like the justice system where u r considered innocent until proven guilty, lending was like that, now borrowers are considered guilty unless proven innocent, that burden of proof is painful