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Does your partner know the full extent of your spending?

New research shows that 41 per cent of men and 43 per cent of women lie about their spending to their loved ones.

You can understate the cost of a handbag purchase to your husband. He can understate his car finance expenses to you. But your finance broker has a professional responsibility to find out about it.

The Royal Commission had brought about a changing lending environment. Mortgage brokers and lenders are a closer look at actual borrower spending behaviour. And it’s now based on transaction statements and credit card statements.
While this may sound daunting, it’s an opportunity to have an open discussion with your partner. And your broker. If interest rates rise, can your budget handle it? Mortgage brokers and lenders need to check this before you take out a loan. You can even make sure you’ve kept spending items in your budget which are important to you both.
Have you looked at your spending? Do you have a budget?
Have you and your partner talked about your budget and what’s important to both of you?
Would you say your bank and credit card statements are going to reflect what’s in your budget?
Forwarding your transaction and credit card statements to your broker is easy enough. If there are two applicants, they are usually both included in emails with the broker. As taking out a loan is a joint decision.
Would it be awkward if your partner is cc’d in an email from your broker, asking about certain transactions on your credit card? For example, maybe you thought you were only spending $200 per month on handbags from Royal Bag Spa Melbourne but it’s actually more like $440 Likewise, maybe your partner is spending $400 per month on the gym and protein supplements from Bulknutrients when he only disclosed it as $50.
The conversations with your broker are not about trying to find out if someone is telling a lie. The conversations are about identifying what the spending patterns are and working out what’s a safe borrowing amount.
If interest rates rose by 2%, would your budget be able to handle that? What items would you cut back on?
By having these conversations with your mortgage broker before you take out a loan, you’ll both be better prepared. So when lenders increase their interest rates, it’s less stressful for both of you.

Dallett Pty Ltd | ABN 70 603 085 132 

Phone 1300 132 242 | PO Box 133 Kew VIC 3101 

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