Here was mine:
1. The recourse limit on all home mortgages should be 80% LTV
2. 3.5 times salary should be the normal limit on the loan.
3. There should be an onus on lenders to show all due diligence in verifying documentation produced by lenders and agents as to claimed income, and to the provenance of the deposit.
4. Subject to the lender being able to show due diligence, and the absence of fraud on the part of the lender, any part of a mortgage exceeding the 80% LTV should be non-recourse, not only against the mortgaged property, but also against any other property owned by the mortgagor or any 3rd party, directly or indirectly.
5. Where all or part of the deposit derives from a personal loan or is the subject of a repayment-guarantee (or the borrower cannot show the provenance of the deposit in the due diligence process) the 3.5 times salary limit shall be reduced by a formula to maintain the loan to repayments ratio.
6. No new home mortgage shall be for a term exceeding 27 years, or extend beyond the 65th birthday of the borrower.
7. The 80% recourse limit shall decline by a sliding scale after the borrower reaches the age of 50, to 20% when the borrower reaches 60.
1. The recourse limit on all home mortgages should be 80% LTV
2. 3.5 times salary should be the normal limit on the loan.
3. There should be an onus on lenders to show all due diligence in verifying documentation produced by lenders and agents as to claimed income, and to the provenance of the deposit.
4. Subject to the lender being able to show due diligence, and the absence of fraud on the part of the lender, any part of a mortgage exceeding the 80% LTV should be non-recourse, not only against the mortgaged property, but also against any other property owned by the mortgagor or any 3rd party, directly or indirectly.
5. Where all or part of the deposit derives from a personal loan or is the subject of a repayment-guarantee (or the borrower cannot show the provenance of the deposit in the due diligence process) the 3.5 times salary limit shall be reduced by a formula to maintain the loan to repayments ratio.
6. No new home mortgage shall be for a term exceeding 27 years, or extend beyond the 65th birthday of the borrower.
7. The 80% recourse limit shall decline by a sliding scale after the borrower reaches the age of 50, to 20% when the borrower reaches 60.