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.
What this means for us in New Zealand is that it’s only a matter of time before banks here start scrutinising expenses even tighter than they do now.
Our advice for potential borrowers is to start simplifying your account structures i.e. minimise how many accounts you have and keep a better handle on expenses. There are tools out there to help track spending. Little things can really make a big difference when it comes to a mortgage application! So seek the help of a trusted mortgage adviser.