In today’s borrowing environment, both lenders and regulators are putting much greater scrutiny on ascertaining actual living expenses. In turn, this has meant that brokers are being asked to provide more detailed information on behalf of clients. And while this does seem an extra hurdle to borrowing, it does allow brokers to get a clearer picture of clients’ financial positions in order to provide responsible and sustainable lending recommendations.

Why the scrutiny?
More often than not, borrowers tend to initially understate their actual living expenses. It’s meant that brokers often have to dig deeper into clients’ expenses, discuss the importance of accurate estimates on outgoings, and clarify the differences between discretionary expenses (e.g. dinners out) and living expenses (e.g. groceries).
In addition to underestimating their expenses, clients are often not even aware of how much they’re spending, and where their money is going.

How can WhiteStar help?
With a focus on putting our clients in the best borrowing position possible, WhiteStar Brokers spend time looking at household cashflow. Frequently, clients are not only surprised by how much money they waste each month, but also pleasantly surprised at how they can reduce that wastage, without dramatically changing their lifestyle. This is becoming increasingly prevalent thanks to the tap-and-go payment technology that is everywhere, and the direct debit subscriptions that often go unchecked.

Our dedicated brokers, Joanne, Emma, Maria, Evelyn and Narrelle, carefully go through bank statements to highlight any wastage and ensure they have all the information that a lender would require – as once an application is submitted to the lender, they will definitely apply their own scrutiny to bank statements and spending habits. Our aim is to make our borrowers as ‘application-ready’ as possible, and reduce the chances of any nasty surprises or discoveries down the track.

The WhiteStar team are specialists at finding waste and highlighting the benefits of efficient and prudent spending. And they strive to be more than simply home loan brokers – by helping people take greater control of their budget, we try to help clients achieve better spending habits for life.

Ask any of the WhiteStar team about the WhiteStar Money Management program to Know Your Money Backwards today. Let’s not have the lenders know more about your spending than you do…