At its core, responsible lending ensures that lenders act in your best interest, promoting transparency, fairness, and affordability.

Suitability Assessment: We must assess whether a loan is suitable for you. We consider your financial situation, goals, and needs. Remember, it’s not just about getting the loan; it’s about ensuring it aligns with your circumstances.

Affordability Check: We will evaluate whether you can comfortably repay the loan. We look at your income, expenses, and existing debts. The goal? Preventing you from overcommitting and facing financial stress.

Transparency: We shall be crystal clear about the terms, fees, and risks associated with the loan. No hidden surprises! You deserve to know exactly what you’re signing up for.

Resilience to Economic Challenges: We'll ensure that you won’t struggle if things get tough. We'll consider whether you can handle changes in interest rates or unexpected financial bumps. It’s like having a financial safety net!

Preventing Financial Hardship: We'll take steps to avoid putting you in a tough spot. We won’t offer you loans that could cause financial stress. So, no risky top-ups or loans that strain your wallet.

Interest Rate Caps: New lending rules limit how much interest lenders can charge on high-cost loans. This shields you from getting buried in debt.

Know Your Limits: Borrow only what you truly need. Peer pressure or fear of missing out shouldn’t drive your decisions. Stay true to your goals.

Read the Fine Print: Don’t skip it! Understand the terms, interest rates, and fees. Ask questions if anything isn’t crystal clear. We are here to help with that.

Budget Wisely: Create a detailed budget that includes loan repayments and stick to it.

Sorted provides valuable information and tools to help you manage your finances effectively. You can find guidance on budgeting, saving, and borrowing wisely. Visit website.

Consumer Protection offers information and advice on various consumer-related topics, including borrowing, loans, and financial rights. It’s a great resource for understanding your rights and responsibilities as a borrower. Visit website.

The Commerce Commission oversees consumer protection and competition in New Zealand. Their website includes information on responsible lending practices, ensuring you make informed borrowing decisions. Visit website.