Big changes in bank assessment criteria

Lenders are applying a lot more scrutiny to applications.

Recently, mortgage application decline rates have been rising just as rapidly as interest rates on the back of law changes the Government has imposed through the Credit Contracts and Consumer Finance Act. The changes mean lenders are applying additional more scrutiny to applications and are conducting extra tests to determine affordability exists. This is resulting in both lower approval amounts and higher chances of being declined.

It’s also slowing down assessment times with lenders now required to trawl through all bank statements and credit cards to assess every item of expenditure.

Our advice is to talk to us well ahead of your required lending need (i.e. give us plenty of notice) and we can work with you to obtain the best approval available. Some lenders are currently taking three weeks to review an application which can create stress leading into an auction.