Buy Now Pay Later (BNPL) and home loan

BNPL offerings are increasingly common these days as they provide the buyers with convenience to buy things without paying the full price at the time of purchase. Due to this, as per ASIC, this results in the buyers buying expensive things which they normally wouldn’t have. As per other findings by ASIC, 1 in 6 had become overdrawn, delayed other payments or borrowed extra money to assist them with their regular costs.

Lenders take all your spending in to the account. Even if BNPL is not considered a credit facility, it does demonstrate the applicants spending habit and financial discipline.

Lenders take a magnifying approach when assessing your financial habits especially when you have a BNPL facility open. It is not uncommon for lenders to ask you to close the BNPL facility as part of the loan conditions.

We would suggest you to take a planned approach with BNPL services. If you are not sure or are concerned that your spending habit could impact your home loan approval chances, feel free to get in touch with us at Snap Financial Solutions. We will be able to have a look at your finances and guide you accordingly.