Already a subscriber?Dear Ms Wise, my partner and I want to buy a home. We’ve got a decent deposit saved, but I’m worried that her Afterpay account – which, to be fair, she always pays off in full – will count against us. She says my Sportsbet account, which I use around once a month, is a bigger liability. Any advice? – TimBrett Sutton, mortgage broker at Two Red Shoes, says he’s seen “countless clients” surprised by how much scrutiny lenders apply to their financial habits.
Sutton agrees. He says to be careful of making large, late-night withdrawals from ATMs at pubs, clubs and casinos, as – to banks – they signal “risky financial habits”.As for buy now, pay later, that’s considered a form of debt, which affects people’s borrowing capacities, even if they make the payments in full.
“So, one clever way to increase your borrowing capacity is to reduce that credit card limit, or … reduce or get rid of your BNPL.”