The ‘Buy Now Pay Later’ mentality, which is growing in popularity, could be negatively impacting on your chance of owing your own home if this practice is not managed correctly.
Providers such as AfterPay and Zip Pay pay the merchant for the goods on behalf of the customer. The customer is able to obtain the goods straight away and then pay the debt off through instalments. Being able to obtain the goods straight away, instead of saving the money first, is a very tempting offer but can often leave customers with bigger debt problems if they are unable to meet repayment obligations.
When a Lender is assessing a customers’ savings and spending habits they may question the customers ability to meet loan repayments and manage their money if the customer is always buying on credit, especially if the repayments are not always made on time.
If you are looking at purchasing a new home it is important to manage your expenses well in advance so you can show the bank that you can save and manage your finances and therefore be able to meet home loan repayments.
If you are looking at buying a property and don’t know where to start come and see us at Territory Loans.
