The borrower argued that the loan should never have been approved as the total rental income available as well as the borrower’s personal income were insufficient to maintain the mortgage repayments.
The court noted that the loans were for commercial or development purposes and found no defence:
The obligation must be on the borrowers to ensure that they will be able to meet any mortgage repayments, however desirable it might be from the Bank’s part to make sure that it is satisfied that repayments will be able to be met. However, it does not provide a defence to the claims made by the Bank.
The claim was dismissed.
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