Imagine that you have just been promoted and your annual salary has increased, but the bank thinks your value has been reduced by 235000 yuan.
That`s what happened to Chatterviti (Shruti Chaturvedi), a 36-year-old professional who was unfortunately on the wrong side of the blow to real estate investors.
"I was planning to buy an investment home earlier this year," Chatwitty said. "my agent gave me a pre-approved loan of seven hundred and thirty five thousand yuan. But at the end of the day, I didn`t buy a house, and when I reapplied for my mortgage, I was surprised to find that my ability to borrow was down to five hundred thousand yuan. "
Chatvelty was puzzled because, in the six months after her first consultation, he got a promotion and a higher salary, and she thought she was better equipped to pay off her debts.
"but brokers say banks are now very strict with credit card spending," she said. "they advised me to consider abandoning fitness membership. They also looked at my credit card payments when I was traveling to Singapore and thought I should cut back on eating and traveling. But at the beginning of this year, when my income was not so high, it was nothing. "
Chatterviti feels that his private life has been violated by banks, but this scrutiny of spending and lifestyle has become increasingly common as lenders try to get a better understanding of borrowers` ability to repay their loans.
Experts expect more rejection, with 41 percent of mortgage brokers believing that more than 1/4 of borrowers who received loans last year will not be successful if they apply today, according to new data from mortgage platform HashChing.
Mayage (Collins Mayaki), a spokesman for HashChing, said borrowers were not aware of some of the factors that could lead to the rejection of the application.
"while the situation of each applicant is unique, I see five things that alert lenders.
- Unusual or impulsive spending: Mr Mayaghi says lenders are now looking for excessive or unnecessary spending through individual bank statements. He said: "having unusual consumption habits, such as spending thousands of yuan on sportswear, raises concerns about lenders because it is beyond the usual range. If there is no reasonable explanation, the applicant may be regarded as a risky client. "
- Credit history: many people have a rating of police or just 2 points. The reason could be a long time ago when a bill was three months overdue.
- Career experience: "typically, lenders require applicants to work in the same job for six months, or to move to other positions in the same industry after at least two years of previous work." Mayaghi said.
- Criminal record: even applicants with a large savings and good credit record will be affected if they have a criminal record.
- Not to tell the truth: "lenders can get bank statements from potential borrowers and find out everything, whether it`s sneaking credit card spending or childcare fees." "if the lender finds out what you haven`t disclosed, you can reject you on the grounds of insufficient disclosure," Mayaghi said.
