This post is also available in: ไทย
Hard to Start a Home: Banks Discriminate Against LGBTs Applying for Mortgages, Charge Higher Rates
A new LGBT mortgage study has shown that banks discriminate against queer people applying for mortgages. Lenders are significantly more likely to deny same-sex couples a home loan, and to charge them more for it.
Home ownership is of course a leading wealth creation tool for Americans.
Gay couples were 73% more likely to be denied a mortgage than heterosexual couples with the same financial worthiness, as evident in nearly three decades of national data.
LGBT people face the economic costs of homophobia:
The study found that in addition to being denied mortgages and access to homeownership, same-sex couples were charged higher interest rates and fees, which collectively adds up to $86 million per year.
“Lenders can justify higher fees if there is greater risk,” says Lei Gao, a finance professor at Iowa State University’s Ivy College of Business and co-author of the study. “We found nothing to indicate that’s the case. In fact, our findings weakly suggest same-sex borrowers may perform better.”
The discrimination faced in accessing financial tools is a double burden to LGBT folks. The community already faces a higher rate of poverty. LGBTs face the same socio-economic challenges that other people who share their sex, race, ethnicity, age and disability face. But they also face unique obstacles because of their sexual orientation. LGBT people face a higher risk of being homeless, discrimination in the workplace, harassment at school, and now face higher LGBT mortgage rates.
A single discriminatory decision can create lifelong effects that furthers the wealth gap between LGBT people and heterosexuals.
What do you think of these results of the LGBT mortgage study?
Read more stories by just signing up
or Download the App to read the latest stories