New Requirements for Additional Transparency to Facilitate Mortgage Switching
Thu Jan 10 2019
New Requirements introduced by the Central Bank to provide additional transparency and facilitate mortgage switching
The Central Bank recently introduced changes to the Consumer Protection Code 2012 (Addendum for Enhanced Mortgage Switching Measures: Transparency and Switching) to:
- help consumers make savings on their mortgage repayments;
- provide additional protections to consumers who are eligible to switch; and
- facilitate mortgage switching through enhancing the transparency of the mortgage framework.
These changes build on the strong framework of protections already in place for mortgage borrowers. The new and enhanced requirements took effect from 1 January 2019.
For the purposes of giving effect to the enhanced protections, the following parts of the 2012 Code were amended:
- Chapter 4 – Provision of Information
- Chapter 5 – Knowing the Consumer and Suitability
- Chapter 6 – Post-Sale Information Requirements
A number of regulatory timelines have been introduced into every mortgage application process. The important points to remember when disseminating this information to your clients is that the clock for these timelines only begins when the application has been submitted to the Lender.