The consultation period for proposed changes to the Responsible Lending Code concluded in June. The updated Code is likely to come into effect with the repeal of affordability regulations. The proposed new Responsible Lending Code includes elements from both the 2017 and 2023 Codes and will provide clearer guidance to lenders on responsible lending practices, particularly concerning affordability assessments.

What’s next?

• Review draft Code: Take the time to read the draft of the new Responsible Lending Code.
  
• Engage with lenders: Discuss potential adjustments lenders may make to their loan assessment process.
  
• Consider client situations: Evaluate how clients who currently may not qualify could potentially qualify under the upcoming changes.
  

These steps will help you stay informed and prepared for the evolving landscape of responsible lending practices. If you have any questions or need further clarification, feel free to contact us.