ANZ bank boss Shayne Elliott, during a recent appearance in Parliament House, said it was “absurd” that when making loan serviceability calculations required by regulations, banks are not allowed to factor in the likelihood that a young professional borrower’s income will rise in the years after they get a loan.
The Australian Banking Association (ABA), in a submission to the Senate inquiry into regulation and homeownership published late on Tuesday, also raised concerns about the restraint, describing it as a “particularly acute” issue for first home buyers.
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