Seriously regular gamblers who want to buy a home will need to drop their punting habits sooner rather than later.
Lenders are pretty smart when it comes to money.
They spend a lifetime reading people's financial faces and when it comes to mortgage applications, they know exactly what these people's property-buying cards are, just by the way people hold their eyes - otherwise known as their bank statements.
The stranger on Kenny Rogers' train knew what he was talking about when it came to both gambling and property buying.
The secret to surviving in the property-buying world is knowing what expenditures and dreams to throw away and knowing what to keep.
And, when it comes to buying a home, gambling should be thrown away.
Yes, you might "only" buy one Lotto ticket every week, or have a Sportsbet account that you top up "now and then" - but such small items can add up quickly, especially when you add a daily takeaway coffee or a restaurant meal to these purchases.
So, aim to throw away Lotto, Sportsbet, and all other similar gambling outlays.
Know when to walk away and know when to run.
Yes, Kenny's new mate on the train has it right again with this advice.
As someone now looking to purchase a property, you've got to play this financial game right - and smart.
That means cutting back on luxuries such as Lotto tickets and regular punts on greyhounds, horses, or sports matches.
Sure, this outlay might be fun and it could even result in a winning hand - but it has every chance of being a loser too, especially when it comes to your property plans.
Hold onto an ace you can keep - otherwise known as a property purchase - and save the money and put your gambling expenses towards a house deposit.
Folding, rather than holding, gambling costs also means your borrowing capacity will increase.
With cash rates continuing to rise for the foreseeable 2023 future, the property-buying world is a highly uneasy one - more so than usual.
Those who count their money while they're still sitting at the table of assuming they'll be A-OK for a loan - for example, your potential mortgage repayments on your dream house are equal to what you currently paying in rent - could find the real lender world a nasty surprise.
Lenders will look first and foremost at your genuine savings - savings or investments and shares that you've diligently put aside or looked after over several years, or at least six months - and examine your recent bank statements as well.
And if purchases such as Lotto tickets and bets on sports matches appear regularly on your statements, expect lenders to be unimpressed.
Just like gambling itself, gambling transactions on a borrower's bank statement result in you - the buyer - looking highly risky.
Remember, too, that lenders will want to see at least a few months of statements, and unlike Kenny's tired train companion, they won't mind telling you that they know you're out of financial aces.
As well, as per Australian law, lenders need to know exactly what your financial cards are.
Under the Australian Securities and Investments Commission (ASIC)'s responsible lending conduct obligations, a lender must ensure that the loan a consumer is applying for is suitable.
In ASIC's own words, this includes making reasonable inquiries about a consumer’s financial situation, and their requirements and objectives as well as taking reasonable steps to verify a consumer’s financial situation.
In other words, lenders must be 200% confident - as should a potential borrower - that you can repay your home loan.
How much you can actually afford could well be much less than you think.
So before you turn to your lender for advice, work on cutting back on gambling debts and other such costs - even if they seem mild or harmless.
You can count your property cards after the dealing's done on your mortgage pre-approval.
Just like Kenny's new mate, we're happy to give you any advice you need - on finding you the best home loans, that is!
We've made a life out of reading people's property plans and ideas, knowing what their cards are, and helping them when we see they're out of aces.
So, give us a call today at Lending Loop for advice and assistance on finding fantastic home loans from more than 40 of Australia’s biggest banks and specialist lenders.
We can also help you refinance your loan to help you keep more money in your pocket.