It is now more vital than ever to be having a discussion with your clients about their budget and spending habits.
Recently, the Australian Securities & Investments Commission (ASIC) have been focusing the spotlight on living expenses and now require Lenders and Brokers to request savings account statements to verify that the borrowers expenses accurately reflect what is in the loan application.
Spending habits include food, mobile phone bill, entertainment, dining out, utilities, education fees, motor vehicle costs and insurances. Basically, anything you spend money on other than debt.
If you have a client who is planning on taking out a loan, you should be speaking to them about their budget asap and get them in touch with us so they understand how the bank is going to assess any home loan application.
Due to these new regulations, a Mortgage Broker is more appealing than ever as we can offer:
- More choice – we have access to a large network of lenders.
- Personalised service – think of us as their Personal Finance Manager, you won’t have to deal with banks ever again as we do all the legwork and negotiations
- Save you money – the banks won’t tell you if there’s a better deal out there, but we will, as it’s no detriment to us
- No cost – our services are free, so you’re paying no more for a second opinion
If you have a client that is thinking of taking out a loan, remember to help them budget early and then send them our way so we can help them find the most suitable loan for their situation.