Why do I need to give Car/Personal/Other loan or credit card statements if the payments are shown in my bank statements?

This is a common question that we are asked. In short it’s because lenders want to see our account conduct.

If they are looking to give us a loan, they want to know in detail, how we handle the loans we already have, as this will give them a good idea of how we might handle our home loans with them.

Generally, they are looking for these things

• Repayments are made on time, no late fees etc

• What the limit is on the facility

• We stay within our lending limits. EG: On credit card with a $5,000 limit, lenders will want to make sure we are not going over this amount.

• What the remaining loan term is

• what the interest rate is

• If we have access to more credit as part of the lending facility.
  
  If you do not have access to your statements through an online portal, we recommend calling or emailing your provider and asking for the last 3 months statements.

I will be closing the card or loan before applying…

In this case, please provide a proof of closure from the lender. This can be an email from the lender or a PDF confirming this.

My loans are for my business, not in my personal name…

This is understandable and is the way it is generally understood from a legal perspective. The way a lender will look at it is that the loan is under your business name, but the owner of that business is you. Therefore you are ultimately responsible for repaying it. We will therefore still need these statements.

It doesn’t necessarily mean your borrowing ability will be impacted, do speak to your adviser for more info.