Tougher scrutiny of borrower’s spending on the horizon
Last week I attended an Australian industry broker conference in Sydney. It was interesting to see the level of change happening in the lending environment over there where approx 55-60% of the market use a broker.
One thing to come out of the Royal Commission looking into banks’ lending practices was a closer scrutiny of borrowers’ expenses. Borrowers are now having to provide a lot more information around their day to day expenses, which also gets cross checked against bank statements. This is meaning much more work for brokers who have to cross check expenses in considerable detail from the bank statements, even down to the dollar.