Government lifts loan affordability assessment rules

The Government has removed detailed requirements for how lenders must conduct affordability assessments, while maintaining the overall CCCFA requirement that lenders must make reasonable inquiries to assess the affordability of a loan.

The Responsible Lending Code has been revised to support lenders to meet this requirement. The new Code provides updated guidance on how lenders can continue managing risk of unaffordable lending without the regulations, while supporting lenders to make responsible use of this greater flexibility.

Lenders are still required to keep good records of their affordability assessments to demonstrate compliance with the CCCFA.

These changes have been made as part of a package of reforms to financial services that aim to streamline the financial services regulatory landscape and remove unnecessary compliance costs.

Read the Government's announcement:

Overly-prescriptive CCCFA regulations scrapped(external link) — Beehive.govt.nz

More information about the financial services reforms, including the revised Responsible Lending Code:

2024 financial services reforms