Circumventing NCCP ('Responsible' Lending)

Discussion in 'Loans & Mortgage Brokers' started by Antisocialist, 27th Jan, 2017.

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  1. Antisocialist

    Antisocialist New Member

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    In 2009 the socialists in Canberra, no doubt at the behest of their Fabian overlords in the U.K., and using the GFC as their cover story, made their next move to control private capital in Australia, with the introduction of the fascist National Consumer Credit Protection Act, aka NCCP or 'Responsible' lending.

    Federal Register of Legislation - Australian Government

    Fabian Society - Wikipedia

    Being somewhat asset rich, and cashflow very poor, NCCP has forced me into utilising private mortgages and third tier lenders, both with interest rates from 6 to 12%, in order to access equity for both living and investment.

    I recognize however, that these are blundt and crude instruments, with which to attempt to excise, or at least minimize the symptoms of, the socialistic cancer that is NCCP. I also recognize that the ALP has the so called Responsible Lending Phase II bill, sitting on the shelf for when they next gain power.

    The solution obviously lies, in a combination of borrowing as a company, not being a natural person and thus being excempt from NCCP's social engineering.

    However, simply registering a company may not be sufficient a barrier, whilst it does not address cashflow issues. How complex are equity borrowers structuring themselves in the face of this socialist onslaught?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    How complex are equity borrowers structuring themselves?

    What do you mean by the above?

    A company is very complex, look at how long the corporations act is for starters. Then you have more complex tax aspects as well, not to mention land tax and succession.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    My view is the NCCP in and of itself isnt the real issue for many, and is in general a good thing.

    Much More of an issue is APRAhensive's approach to APRAnomics, and the logic makes perfect sense.

    Survival of the system, with some collateral damage to some borrowers that general society wont have to much concern about.

    Middle term I see all bar corporate borrowing being "protected"

    ta
    rolf
     
  4. D.T.

    D.T. Specialist Property Manager Business Member

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