Lending requirements have tightened and the banks want to know exactly what you’re spending your money on so they look at 3-6 mths bank statements to see if what you have told them initially actually matches the reality.
This has been making it more difficult for applicants to be approved for a home loan as it can appear too much money is spent on Uber Eats for example.
You might be shocked as well once you look closely at your own spending habits.
- Lenders are required by law to take living expenses into consideration when someone applies for a home loan. This is so that lenders have a more complete picture of a borrower’s financial situation and whether they’ll be able to repay the loan.
- Entertainment and recreation
- Clothing and personal care
- Medical, health and fitness
- Children and pets (childcare, sports, tuition, pet expenses)
- Communication (internet, phone bill)
- Any other regular outgoing expenses
To give yourself the best chance of being approved for a home loan, print out your bank statements for the last three to six months and highlight any expenses you could cut back on. This will give you the chance to start addressing any problem spending behaviors which may prevent you from getting a home loan.