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The StepUP is a low-interest loan with no fees for people on low incomes. Do you find it more difficult to get a loan? Here is the reason why

At the moment it is more difficult to get a loan in Australia than it has been in recent years. Big credit institutions were beaten by the King of Finance Service Providers Committee and the press for loose credit granting rules. Data from the Australia regulator shows that new loan book gains are decelerating from 6.6 per cent about a year ago to 5.8 per cent this year.

This is due to a number of elements, such as a raid on investors' credit, a move away from risky credit and greater scrutiny of all borrower documentation. It' s like I have a police record,' says Paula Mills, head of the Academy of Entrepreneurs in Sydney. Said she, although her finances are "very healthy", she cannot find a mortgage extending institution.

When I first asked for a loan, I probably earned a fourth of what I now earn and they authorized it in a few days," she said. "and I' ve been at six to eight bank accounts. Realtors across the nation are seeing the effects of loan searches at silent auction houses and open houses.

"Really, the King's Committee has exposed a few issues in banks' credit policy, so the bank responded by adopting a more conservative approach." "We' re going to see a fall in prices in Sydney and Melbourne, about 10 percent at this point, and it could go a little further south."

However, the National Australia Bank's lead analyst, Alan Oster, rejected the discussion about a strong decline in housing rates. He predicted in an advisory published last weekend that the worst-case scenario would be 6.5 per cent in Sydney and 2.5 per cent in Melbourne. Mr Oster said that the slowdown in the economy is being fuelled by changes in regulation that set the ceiling on investment credit and stricter controls on borrower control.

"One of the things that I think a lot of folks care about is how much the bank really understands your incomes and your capacity to repay a loan," he said. "Right, we really want to see a copy of your payroll, we're not just going to use an automated system."

Said that the nature of the individual who can lend has also changed thanks to government intervention. "Investors' markets are down and owner-occupiers are up, so there's been a change."

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