Recent tightening of lending standards and practices means that you may have to provide a far more detailed summary of your living expenses as part of an application for finance.
Lenders are now requiring a much greater emphasis on checking an applicant’s capacity to repay loans when assessed against current financial commitments.
Previously, most lenders were comfortable with fairly generalised details of an applicant’s spending.
But from July, the requirement is for far greater detail with several lenders demanding expense figures for up to 16 different categories. And we expect this to become the standard in due course.
With modern technology, little gets past the lenders. If you fail to be upfront about all of your expenditure, and their systems discover an omission, this could result in much greater scrutiny or even turning down your loan application.
With the festive season looming, we often see our credit cards getting far more of a workout than at other times of the year, and this could have an effect on how lenders view your ability to service a loan.
If you’re planning to apply for finance in the near future, then please get in touch with me to discuss how you can ensure that any seasonal spending won’t have a detrimental affect on your loan application.
Just give me a call. I’m here to help.
Cairns Mortgage Broker – Jason Thomson is a Mortgage Adviser and Finance Broker based in Cairns with clients all around Australia. Over 100 client reviews featured on his website prove that Jason is a trusted industry professional, facilitating great outcomes for his clients. Using his wealth of experience in financial services, he thrives on delivering superior service. Jason is very approachable and is always looking for new clients to help in the often confusing world of finance and property. Offering a no fee service, you’ve got nothing to lose by having an obligation free chat with Jason today.