Australia banks scrutinize the transactions in your bank statements

Credit card

Lest you are not aware, Australia banks and lenders are looking at the transactions and descriptions in your bank statements.

Cheeky descriptions in bank statements

For every mortgage application, bank statements showing salary crediting transactions are mandatory. We look for the regularity of salary crediting and matching of the figures to the pay slips and annual income documents. Some small and medium companies may opt for cash payments of salaries. In these situations, banks cannot verify these cash deposits as salary or the employee may not even deposit them. Then you most likely may not meet the lending criteria and not successful in the mortgage application.

In a recent article published in a leading property portal in Australia, banks are not enjoying the humour behind cheeky or naughty descriptions for the transactions. You might be splitting the drinks bill on a Friday night out and thought a sense of cheekiness could be fun. You labelled the cash transfer transaction as “flower joint”, “dinner loan” and this may make the bank officer nervous about your lifestyle.


Why does bank transactions matter?

A few of these descriptions may lead to a perception of your spending habits, which amount to your living expenses. Many of my non-resident clients who are not Australia PR or citizens, are often misguided on how Australia banks assess their mortgage borrowing capacity.

Living expenses is a key component in mortgage assessment. Essentially, if you are spending a huge chunk living the good life, banks will wonder how much remaining cash you have for mortgage repayments. Imagine a family of 4, who has a working husband and a stay-at-home wife who takes care of 2 children. A salary of net $8,000 may be spent on day-to-day living expenses of say $3,000 a month and $10,000 on holidays a year. That would leave you $4,166 a month for repayments of car loan, home loan, which may result in a balance of $1,166. Would this be sufficient for the Australia property loan you are seeking?

Bank statements tell us a lot about you. Loans. Credit Cards. Mortgages. Holidays. Lifestyle. Spending Habits.


Always speak to an Australia mortgage broker

We provide services to help you successful apply for non-resident mortgages. We work directly with Australia and Singapore banks and we know their policies well. We take the guesswork and assumptions out, and give you solutions personalized to your requirement and profile. We helped thousands to obtain new loans and refinance. Visit our Australia website today.

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