ANZ chief executive Shayne Elliott says banks cannot take rising incomes into account when assessing home loans

ANZ Bank chief Shayne Elliott said in a recent speech to Parliament that it was “absurd” that banks cannot take into account the likelihood of a young professional borrower’s income increasing over the years when making regulatory creditworthiness calculations. after they get the loan.

The Australian Banking Association (ABA), in a Senate inquiry into regulation and home ownership published late on Tuesday, also raised concerns about the cap, describing it as a “particularly acute” problem for first-home buyers.

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