The man says the situation was "ridiculous" and could have been hurtful
A Dunedin man felt forced to lie about ending therapy in order to secure a mortgage.
The man, who refused to be named, found it “bloody ridiculous” when he was told by his mortgage broker that his $184 a fortnight spend at his therapist could lower his chances of having his bank loan approved.
He was just one of the many Kiwis who have experienced difficulties in securing a home loan following changes to the Credit Contracts and Consumer Finance Act (CCCFA). Others who have shared their stories with Otago Times Daily said their mortgages had been declined over Kmart shopping trips, eating at restaurants, and Netflix accounts.
Read more: Dunedin woman hides pregnancy to get mortgage approved
The hospitality worker said he had been advised by his mortgage broker to get his therapist to send a letter saying that he would no longer need their services, to increase his chances of his application getting approved, ODT reported.
If approved, his mortgage repayments would have amounted similar to what he now paid in rent.
Although he wasn’t told that he would not get approved by the bank because of the spend, he said, “the vibe I got was that it would be such a black stain on my record, it would prevent me from getting it.”
The letter from his therapist said he had advised he would not be continuing to use their services, and therefore the payments would stop.
“I wasn’t going to stop going... I literally had to get them to lie for me,” he told the publication.
In order for him to continue going for therapy without affecting his chances of getting a mortgage, his therapist offered to let him pay in cash.
The man said he understands that his mortgage broker was just trying to do his job under the new rules, but he was concerned being advised to stop therapy could have a significant impact on someone in a vulnerable state.
“I was lucky, it didn't really worry me, but it could have been really hurtful for someone,” he told ODT.
David Clark, minister of Commerce and Consumer Affairs, ordered a review of the rule changes earlier this month, which is being undertaken by the Council of Financial Regulators.
