Mortgage brokers and lenders will face fines or even jail terms if they fail to properly assess if a product is suitable for customers and whether a borrower can repay a loan under tough laws unveiled today.

The uniform national law will for the first time cover mortgages, credit cards, pay day lending and other consumer credit products.

The Australian Securities and Investment Commission will be charged with enforcing the so-called responsible lending laws.

Under the laws, defaulting borrowers will be able to sue for damages as a result of being put into loans they cannot repay.

The Australian