If you’re looking to buy a property, it’s important to remember that your gambling habits could be taken into account when you apply for a home loan. Can gambling impact your home loan application? Understanding this is crucial before proceeding.
Your lender will look at any track record of gambling when assessing your financial situation and ability to repay the mortgage. This scrutiny raises the question: can gambling impact your home loan application? It’s one reason why more Aussies are now consulting brokers to navigate the complexities of securing a loan. Understanding why more Aussies are choosing a mortgage broker can shed light on this trend.
Not only could gambling jeopardise your chances of being approved for a loan, but it could also impact your ability to refinance down the track, leading to more Aussies opting for mortgage brokers. When asking ‘Can gambling impact your home loan application?’, it’s always helpful to seek professional advice.
Understanding the process
When you apply for a home loan, your lender will do an affordability assessment. As part of this, we’ll assess your income (from all sources) against your outgoings (your regular expenses). We’ll also check your credit score to see why more Aussies might choose a mortgage broker instead.
If a lender sees evidence of regular gambling transactions as part of your expenses, it may be a red flag. We’ll look at how much money you’re gambling, how frequently you’re betting and what type of gambling you’re participating in. So, can gambling impact your home loan application? The answer isn’t straightforward, but frequent transactions might affect it.
If it’s a small amount you’re gambling relatively infrequently for leisure, it probably won’t raise any alarm bells with the lender. The occasional Powerball ticket, for example, will be considered harmless. However, if it’s an ongoing habit that’s getting out of control, Aussies are finding that it could limit your ability to secure finance.
How to turn things around
There are steps you can take to try to maximise your chances of getting approved for a home loan if you do have a history of gambling, which could explain why Aussies are choosing mortgage brokers.
- Domino your debts: Paying off your debts – whether it be credit card debt, car loan or personal loans – is a good place to start, as it shows you are able to manage your finances effectively. It’s one reason why more Australians are seeking mortgage brokers.
- Budget and save: A strong track record of saving will go down well with lenders. Keep putting money aside regularly and grow your savings nest egg.
- Boost your credit score: You can access your credit score and credit report for free every few months. If you notice any errors in the report, contact the credit provider. The government’s moneysmart website offers tips on how to improve your credit score, such as lowering your credit card limit, paying your utility bills on time and keeping on top of credit card repayments.
- Stop gambling: If you think your gambling may jeopardise your home loan application, try to reduce or quit gambling.
Seeking help
There are many resources available to help you tackle a gambling addiction. GambleAware offers tools and support for those who are looking to stop gambling. The site includes a gambling assessment to see how the habit may be impacting your life, as well as research and links to gambling support groups.
You can also get immediate support from Gambling Help Online on 1800 858 858. It’s free and confidential. Other options can be found on the Health Direct website.
Like to talk through your finance options?
If you’d like to know more about how your gambling habit may affect your home loan application, we’re here to answer your questions about whether gambling impacts your home loan application.
Talk to us confidentially about your financial situation, and with mortgage brokers becoming a popular choice for Aussies, we’ll help you work towards getting the finance you need.
