Bank rules get tougher so technology’s importance grows

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.

Stricter rules around loan serviceability means people able to prove what they spend are getting the upper hand.

Financial regulator APRA last month called for more realistic living expense details on loan applications and increased vigilance by lenders.

People’s Choice Credit Union spokesman Stuart Symons said reliable records were becoming increasingly important, and borrowers could help themselves “by being on the front foot”.

“If you can’t show what you spend, a lender may look instead to an estimate that shows a higher level of spending, and therefore allow you to borrow less,” he said.

There are several free and paid apps and budgeting software available, including the Australian Securities and Investments Commission’s free TrackMySPEND, Pocketbook, Pocket Expense and bank-related apps.

“Online and app store reviews are the best place to start as they will highlight the features that may work best for you, and the limitations that may rule it out,” Mr Symons said.

“You will probably also find that you will become more aware of your spending and cut back where you can, which means additional cash for the things you value.”

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Source: Bank rules get tougher so technology’s importance grows – News.com.au