- In First things first - Steps before applying for finance, Getting ahead - How to improve your finances
During the last few years, buy now, pay later services, such as Afterpay and Zippay, have become very popular. Many people find these services very helpful for paying off appliances, clothing and more. But did you know that they can affect your home loan application.
How lenders look at Afterpay and Zippay spending
Afterpay, Zippay, and similar services have most definitely not gone unnoticed by lenders. In fact, lenders are becoming increasingly strict when it comes to the use of buy now, pay later services. Lenders will go over your financial statements with a fine tooth comb, looking for evidence of payments to these services.
If they see that you’ve been using Afterpay, Zippay, or a similar service, one of three things may occur. They may decline your application. Or they may request that you close all your buy now, pay later accounts, and provide written evidence that you have done so. Or this will be included as a debt and reduce the amount that you can borrow.
Prepare before you apply for a home loan
It’s important to prepare your finances before you apply for a home loan application. At Bee Finance Savvy, our savvy broker Desiree, goes over our clients finances just as carefully as the lenders do, to identify any potential problems. Doing this before you apply can avoid some major headaches!
We can point out things that you may need to change, such as your use of Afterpay and Zippay, to improve your likelihood of approval.
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