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News headlines; it's getting harder to get a loan after the Banking Royal Commission


So will it be harder to get a loan after the Banking Royal Commission?

A recent article by 9news declared that 'it will be harder to get a mortgage, car loan or a credit card increase if banks take heed of the banking royal commission's call to verify customers' expenses' and 'it means banks will have to do more to verify customers' income and their actual living expenses, rather than relying on the widespread use of the benchmark household expenditure measure (HEM)'. But are they right?

First a few facts; the HEM is an allocated expenditure amount based on family size ie couple or couple with 2 children etc. Although this measurement has been available many lenders have already been requiring more information.

Our clients have been providing evidence of income (payslips, tax returns, rental agreements etc) and details of their expenses for years already so the differences are likely to be minimal.

Of course there may be lenders who have not required this but the ones that we deal with already do.

Of course, there are likely to be some changes and these will effect some lenders more than others but we'll let you know as new information comes to light.

Feel free to check in here for information and we'll let you know as we hear of it.

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