Spikes of expenditure in January. Should I wait or apply now?

Hi,

Say you spent almost twice as much money in January compared to February. (Christmas shopping, Guests, restaurants etc.) Given that most lenders will require two - three months of bank statements to verify your expenses, would you:

• start applying for for the loan right now; OR,

• wait a couple of months before applying, so that you could provide the lender with three month of your “normal” expenditure history?

Thank you

 

Depends if you are going to be affected by this. Speak to a broker

 

If that's true (i.e. previous months would show less if requested), should be OK with explanation.

 

Thanks Redom,
Not sure if it helps, but the lender would probably be ANZ.

 

Not all banks will drill into your monthly living expenses, however Brokers/lenders have to make reasonable enquiries on your expenditure.

A common sense approach has to be taken during the expenditure in December and Jan during the holidays as it will be higher, commentary just needs to be made around it.