How about those banks?

HOW about those banks? Their bad behaviour gets exposed by a massive misconduct microscope and what do they do?

They get their own CSI on … they get more than a little forensic with you …the humble home buyer.

Called to account for a lack of scrutiny and handing out loans too easily, that complacency has now been replaced by blanket over-enthusiasm … to the point you may need to think twice about how much you spend on your favourite takeaway … or movies … or gelato.

They have now taken to voraciously scouring you bank statements … like a wronged partner looking for proof of guilt … and use their findings to draw up a potentially damning dossier … an extensive profile of your spending habits.

They will also want to be absolutely convinced that you can afford to pay your mortgage, not just today, but well into the future … especially if rates go up.

It means more people are getting rejected for loans because their financial profile doesn’t cut it in the banks’ eyes. That is something you really want to avoid, because any rejection for finance is a blot on your credit rating … your ability to borrow in the future.

So, who wants to deal directly with those brow-beaten banks? Well, if you do … things could get complicated … and, instead, your best bet is to have a good broker in your corner … and ideally up to 6 months before you buy.

A good broker will have experience and a great network and will work hard to get you the best possible loan. They will have access to a wide range of mortgages from different lenders and will find one that is the right fit for you.

Importantly, they’ll be keeping a close watch on where the banks are at with their lending habits, and they will help you develop habits that enhance your borrowing capacity. They will work with you on getting your spending and financial records sorted, so that the banks see you as a viable borrower.

At this time, we can’t know exactly where the banks will go with the 76 recommendations of the Royal Commission but by talking to Irusia about getting in touch with a good broker (sooner, rather than later) you are at least doing all you can to keep the door open on your home buying dream.

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