The MFAA welcomes the findings of the ASIC review into interest-only loans, primarily that new interest-only loans have slowed to $35.6 billion in the recent quarter.

 

​“The report supports the positive impact that brokers have on providing credible credit advice to consumers, by ensuring that interest-only loans are only offered after the strictest of compliance standards are met. These standards require that a broker conducts a full needs analysis and fully explains the nature of the product prior to it being offered as an option,” stated MFAA Chairman Cynthia Grisbrook.

 

“The ASIC report is a timely reminder to all our members to ensure that they are up to date on the compliance requirements as they relate to interest-only loans, to ensure they are providing the correct credit advice.”​

 

The MFAA will also be communicating an up to date set of guidelines to refresh members on these compliance requirements.