Uncertainty around royal commission findings sees first home loan applications rejected

Applications for first home loans are being rejected as uncertainty around the banking royal commission’s findings builds.

As reported in The Australian the major banks are rejecting up to half of all home loan applications, according to chairman of mortgage broker Loan Market and deputy chairman of Ray White,  Sam White.

Sam told Ross and John in anticipation if the changes people are expecting the commissioner to recommend on Monday, how banks lend money has undergone a significant change.

“Because of those changes, which are constantly moving almost daily, we’re seeing a big decline rate at first go,” Sam said.

“We’re having to work with clients for sometimes 3-6 months to really help them get in a position to be able to borrow money.”

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Sam said one of the biggest impacts on spending is the rise of tap and go technology.

“With tap and go, monthly bank statements are now 30 pages long,” he said.