Lenders assess mortgage applicants by scrutinising income, expenses, and financial habits, typically reviewing three to six months of history. Making positive changes now, like curbing unnecessary expenses, can enhance your financial profile and increase mortgage approval chances. Consult local experts for precise, up-to-date advice in New Zealand.
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“Any ideas on how far back lenders look regarding expenses? I am looking to get my first home in the next couple of years and am a little bit worried since I do not cook at all. So I buy lunch when at work, and Uber eats/doordash for dinner. I just need a rough idea of the question above so I can slowly implement the changes I need to make when the time comes.”
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Lenders typically look at your financial history to assess your ability to manage mortgage repayments. While I don’t have specific information on the lending practices, I can provide some general insights.
Lenders often review your income, expenses, and overall financial habits to determine your eligibility for a mortgage. They typically analyse bank statements and other financial records to understand your spending patterns. The specific time frame that lenders look at can vary, but it’s not uncommon for them to examine at least three to six months of your financial history.
In your case, if you’re planning to apply for a mortgage in the next couple of years, it’s a good idea to start making positive changes to your financial habits now. This might include cooking at home more often and reducing reliance on services like Uber Eats or DoorDash. These changes can demonstrate to lenders that you have the financial discipline to manage homeownership expenses.
Additionally, consider maintaining a stable income, paying down any existing debts, and saving for a down payment. These factors, along with positive changes in your spending habits, can strengthen your financial profile and increase your chances of mortgage approval.
For the most accurate and up-to-date information on lending practices in New Zealand, it’s recommended to consult with a mortgage advisor or financial institution in your local area. They can provide specific guidance suitable to your individual situation and the current lending environment.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
