Hey there,
Just a little curious on how things work-How do banks find out (unless you tell them when you’re applying) that you have a mortgage or own other property. In the same line of thought can banks find out if you own a credit card. I know they can do a credit check but is it registered elsewhere?Cheers,
Arthur. K
When you apply for credit the application is recorded on your credit file. When a loan, credit card, store account etc is approved it is also recorded.
It is very easy for the banks to check once you have completed an application (the application gives them the authority to check).
You can check yourself at http://www.baycorp.com.au. You can buy a copy of your file by email or request it for free but it takes a couple of weeks.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I’m aware of the credit reports. However, just because I applied for a credit card, homeloan etc and it was approved doesn’t necessarily mean I have a credit card, homeloan etc.
Maybe I was just trying to see how much I can really borrow or simply just getting pre-approval.
I can go on..maybe I applied for a homeloan and it was approved, but I decided not to go ahead with the purchase due to a poor building inspection report.Is there a seperate record or register that can tell a bank if I definately have a current mortgage or a credit card, personal loan etc?
They could always do a search to see if you owned property in your name, then check this to see if there is a mortgage. But this would be time consuming and costly, they would have to also search each state separately.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Why do you want to know this?
When someone asks how to make a bomb they are either just interested or they want to blow something up.
Cheers
Stu
Well said Stu – it does sound like someone wishes to consider committing fraud against a lender…this is a criminal act.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
This is dodgy stuff…
Just to put your mind at ease, banks do not ask for copies of bank statements etc for nothing. Bank statements tell a great story. If you do have credit cards etc that you do not declare, apart from seeing an application on your credit history (which they may ask about if you do not declare the card because you may have been declined for some reason), they may see repayments in your statements.
Be honest with your broker and they will sort you out. You may just need to try another lender with easier serviceability models to be able to borrow more money.
TMA
http://www.email4money.info
Investor Links
First Home Buyer WebsiteCommon guys, don’t start implying that I’m a criminal just because I am curious on how things work. It was just an innocent question that a friend and I were having an argument about.
Besides not everyone who asks how to make a bomb wants to blow something up…There are people who are simply curious and want to understand the science of it.
Investing is like a game…and I want to know all the rules and how everything works…nothing wrong with that.This is kinda on the same line.
I went to a few people to get a loan, and two people came back with the same loan with the same bank. The second person who offered me the loan advised me to cancel the first, as he said that it looks bad if two different people lodge a loan application with the same bank, etc, etc.
I’ve also heard, that if I apply for too many loans at one time (e.g. an investment and home loan), that the banks will find out and will be less likely to approve my loan. The reasoning here is that even though I will only take out one, the banks will either think I’m doing something dodgy or don’t know how I want to use the money, hence, less likely to approve.
Are either of these scenarios true?
well it can look that way but a simple explanation will usually get you over any hurdles.
I would suggest you just apply one time – doing it more willonly complicate your CRA and your life [biggrin]
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
There is nothing wrong with multiple applications if they are for different purposes. I used to do this all the time. Full disclosure on the application avoids any questions when the lender does their checks.
You have to remember that there is really only one company holding credit information about everyone and only two companies holding most information about mortgage finance. They just type in a name and, when multiple hits come back, alarm bells go off if it is not explained prior.
I think many people also do not realise how important their credit history is to them. It can both help or hinder you a lot when it comes to investment and finance.
TMA
http://www.email4money.info
Investor Links
First Home Buyer WebsiteGeez,
All these mortgage brokers wantin full disclosure
It is not the brokers. It is the lenders.
TMA
http://www.email4money.info
Investor Links
First Home Buyer Website
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