It is common knowledge that your income and expenditure determine the fate of your home loan, apart from your assets and debts. Also, good credit history and proof of regular savings go a long way in tipping the scales in your favour. However, with household debt at a record high in Australia, the financial regulator recently called upon lenders to set stricter criteria around loan serviceability, which means borrowers who can prove where they spend stand a better chance of having their home loan approved.

technology brings you closer to your home loan

According to Linda, a mortgage broker, there is good logic behind the move. “Banks are legally obliged to lend responsibly. If you cannot provide a realistic estimate of your expenses, lenders are bound to err on the side of caution, taking into account a higher estimated level of spending that ultimately reduces the amount you can borrow.”

Technology to the rescue

“Borrowers who embrace apps and budgeting technology that tracks their spending are giving themselves a better chance of grabbing a good loan amid a crackdown by regulators,” read an article on highlighting how technology has turned the mortgage industry around.

Apart from enabling borrowers to compare home loan deals online and connect with mortgage brokers instantly on platforms such as HashChing, now borrowers can also make use of online financial tools to ease the mortgage application process further.

You can use online budget calculators or expenditure tracking apps that are available in plenty. Many of these tools are free such as the budget planner or TrackMySpend offered by Australian Securities and Investment Commission’s MoneySmart. Pocketbook is yet another budgeting and tracking app that syncs with major banks and credit cards, providing a real-time view of your spending. You can also find a sophisticated and easy to use budget calculator on HashChing as well as several powerful calculators to help you determine your borrowing capacity, repayments, stamp duty, etc. to plan your finances.

Budgeting with technology

Various apps and software have made it easier than ever before to track your expenses by dividing them into logical heads. Over time, this gives you a clear view of how much you splurged on takeouts and coffee and where exactly can you cut down to boost your savings. To find the best app or tool for your requirement, check reviews and read about various apps online to choose a trusted one.

You can further use technology to your advantage by reviewing your credit report regularly and fixing any errors that might have crept up. A missed utility payment or an unsettled debt can stay on your credit report for years, bringing down your credit score significantly. Checking your credit report is free and easy and provides you with a snapshot of your financial records. Thus, it makes sense to keep your credit report free of blemishes and immediately dispute any anomaly you may come across.

Knowledge is power

Buying a house requires meticulous financial planning. To avoid mortgage stress in the future, it is pertinent that home buyers make informed decisions, crunching the numbers to establish their home loan serviceability realistically. By tracking their expenses using budgeting apps, home buyers can get a logical breakdown of their expenditure that will not only help them prove their spending to lenders but also review frivolous spending to boost their savings.

At HashChing, apart from providing powerful online calculators for home buyers, we also offer a technology-enabled platform that allows you to compare broker pre-negotiated home loan deals from over 60 lenders across Australia. You could also find a verified broker in your area or get in touch with an expert, free of cost, from the comfort of your favourite screen, here.


By Vidhu Bajaj,
HashChing Content Writer



HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.

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