There has been much publicity over 2019 around lenders and the big banks in particular, making it harder for clients to get that all important loan approved!
It has led us at Thompson McNeill to become more aware of some of those things to which lenders might have in the past turned a “blind eye” but are now saying a definite “no” to.
Whilst it has become a regular practice to help some of our non-bank lenders to assist refinance short term debt and so make that debt servicing burden a little lighter and acceptable to the banks, even those non-bank lenders are questioning some of the shopping behaviors that have developed recently.
What we’re referring to is that phenomenon of “buy now, pay later” services that are becoming more the norm. Such things as Afterpay, Partpay, Laybuy and Oxipay can ring “alarm bells” when our lender is reviewing our mortgage application and considering just how we manage our income and expenses.
So, if people are contemplating borrowing money to buy property in the near future, it’s super important that the transactions in their bank statements demonstrate the ability to pay for items and not book them up with a buy now pay later scheme. After all you can’t book up a loan payment, it must be paid on time, so why not practice and demonstrate paying for your items like you would your home loan now!!
The bank will love you for it and is more likely to say YES.
Book an appointment with us so we can guide you through the requirements of the home buying process well in advance of you going shopping for that home!
Give us a call if you want to make sure those finances are as good as they can be!
Thompson McNeill (03) 281 8605 or: