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ISCOVER
Jessica Darnbrough
The government is “over regulating” the lending sector, Gadens Lawyers’ Jon Denovan has claimed.
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Speaking to The Adviser, Mr Denovan said the government obviously thinks the Australian public needs a nanny because it has created a “nanny state”.
“Today, I am not allowed to take out a new mortgage unless I can prove that I can pay it off using my income,” he said.
“If I am an older Australian who has built up their wealth and accumulated a number of assets in their time, why am I all of a sudden not allowed to use my assets to pay off my mortgage?
“Why am I being punished for being older?
“Similarly, I can no longer invest in a product with friends or colleagues unless I come up with an investment scheme first. The freedom of Australian borrowers is being limited, which will have a negative impact on the economy.”
Mr Denovan went on to say that if something wasn’t done about the “over regulation”, the lending sector would suffer as a direct result.
“I believe self managed super funds will continue to grow in popularity. However, it may not continue to grow in terms of dollars as the government is thinking of regulating this sector as well,” he said.
“It really is time for non-bank lenders, mutuals and credit unions to come together and, with one voice, challenge the over regulation forced upon us by government.
“They need to make a stand and make a difference.”
