Bank credit checks – tougher mortgage lending
Bank credit checks are going to be tougher and more thorough than ever from November 2018 in Australia
With the advent of investigations into lending practices in Australia and the resultant exposure of poor lending practices, banks are setting new standards with bank credit checks perhaps with a view of reprieve but most certainly as a preventative step to avoid going down the same costly avenue again.
Only this week ANZ changes have hit media headlines announcing tougher lending criteria and much more thorough verification of income, assets and close scrutiny of bank credit checks.
Previously banks would often take what information you provided as being acceptable. Not any more !
In depth analysis of your income and other credentials will play an important role in future mortgage finance applications. In short the banks will quiz you on all data you provide them with, request reliable evidence to support what you give the banks on your application and third party verification of certain information.
One very important aspect, probably the most important, will obviously be your credit history and associated credit file. Bank credit checks will be far more thorough from now on so it would be prudent to make sure your Equifax credit file or Veda credit report is accurate, up to date and accurately reflective of all information you provide on a mortgage finance application.
The time you take to obtain your credit report prior to applying for finance will pay off. Make no mistake, if your credit file does not match your application details, you will be inviting a high probability of declined finance. Get your credit file first and check it ! Ideally acquire your file with a professional assessment outlining any issues which may need addressing.
An interesting bank credit checks article in the Australian Financial Review sums up these important changes.