Hi
We are looking to open a BNPL account to buy mainly home furniture with interest free. But the problem is as I have mentioned in the title , I don't want to affect my home loan application. Our settlement date is next month so I want to cross check that this type Card/service wont slow or make the process difficult..
Thank You
ok
Not according to the big banks.
AfterPay and ZipPay don't need to do credit checks.
Humm under $500 is another one I can think of.
ZipPay comes up on Equifax
Both affect car loans, why wouldn't they affect mortgages?
Zip does Checks
Afterpay will check if u ask to increase your limit
Is your loan unconditional yet?
yes already paid half of the home deposit
Then it doesn’t matter what’s on your credit report or statements, banks not going to look again
So if I apply for Latitude Go wont affect anything
@Stylekind: But if your loan is over 1 year old (in the case of new land purchase and a construction loan) some banks do another credit check before final settlement but since it is a loan that is already being serviced, it is unlikely for the bank to reject your loan due to a Afterpay or Zip application unless your financials have significantly changed.
If it is possible, get an extra home loan and use it for furniture. You will pay off your furniture in 30 years with super low interest.
nice one :) no thanks
BNPL can at times have zero effect on your app.
We had Zip (Me) and Afterpay (partner) and had no effect on our app at all.
Depends on your serviceability at end of day, if you can service the home loan repaymets it makes no difference.
At worst they will ask you to close the accounts
Also a lot of BNPL services are owned by banks now (Klarna is CBA, NAB has interest in Zip etc)
Gym Memberships
Pet Insurance
These were things our bank (NAB) was concerned about when we applied… considered wasteful spending
Why can’t you wait to apply after settlement?
Technically if your loan is unconditional and you have already signed the loan authority form, another credit application won’t affect your home loan which is pending settlement
But to be safe I’ll wait until after settlement
I agree, too much at risk. You can always do your research and negotiations now, but buy immediately after the settlement.
Can you use any existing furniture or can get loan from friends or family, or do without any non essential furniture just for a few days.
Sorry to sound like I am lecturing you but is having this brand new furniture a necessity? Could you not go second hand? Use what you have?
I just feel like using BNPL on top of a new home loan sounds like you are stretching yourself financially….If you are not just use the cash you already have?
Also, keep some cash aside for things you might need after you move in. There is always so much unexpected spending with a move.
BNPL and credit card are two different product types.