Goulburn Real Estate Blog

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October 30, 2019

Have you been out on a buck’s night? The questions banks are asking

Mortgage brokers have been asking some highly intrusive questions in the wake of the banking royal commission. With banks tightening their criteria for lending to Australians, brokers have reported asking more personal questions.

Pro Solution Private Clients associate director Jodie McKeown, along with her colleagues, has begun warning clients that some of the questions banks are asking are likely to leave people upset.

One of Pro Solution’s clients was questioned for his spending at a gentleman’s club for a buck’s night while another was asked about a $50 transaction to his mother, in whom he was simply reimbursing for a pair of shoes she had bought him.

domain.com.au reported on Naomi Chatelier in July. Naomi had been questioned about her IVF treatment to great length by ING. Naomi applied for a home loan with her husband, inclusive of proof they would be able to pay back the loan of $650,000. She mentioned IVF as it came up on her credit card statements and wanted to be upfront about it.

More personal and intense questioning followed, and Ms Chatelier was asked if she planned to use her frozen embryos within the next five to ten months. When she said she may, the bank told her she was not in a position to be offered a mortgage and assessed the application purely based on her husband’s income.

Although Naomi had 400 hours of long service leave and paid parental leave entitlements, this was disregarded. The questioning of her maternity leave when applying for her loan, despite not being pregnant, left Naomi upset and resulted in her making a complaint to ING.

With each of the big four banks assessing applicants on a case-by-case basis, applicants should be (sadly) prepared to be asked questions that are more intrusive, personal and partially upsetting.

Discretionary spending habits of mortgage applicants are also being cracked down on. Say no more to UberEats, Netflix, Spotify, gambling apps, etc.

By Andrew Trim
Author of Real Estate Dangers

Are you interested in reading Real Estate Dangers by Andrew Trim? Contact us to receive your free copy. Email: mail@goulburnre.com.au or call 02 4822 8711

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Article extrapolated from:

Heagney, M. (2019). ‘Been on a buck’s night? ‘If you want a mortgage, your bank might ask about it’, Domain, 14 August. Available at: https://www.domain.com.au/money-markets/mortgage-applicants-warned-be-prepared-for-some-very-personal-questions-868947/

Heagney, M. (2019). ‘First-home buyer questioned about maternity leave when applying for a loan, despite not being pregnant’, Domain, 31 July. Available at: https://www.domain.com.au/money-markets/first-home-buyer-questioned-about-maternity-leave-when-applying-for-loan-despite-not-being-pregnant-864943/