Common things banks mark as red flags:
1. Unusual transfer references: As brokers, we’ve seen some weird and whacky ones however can be tough to explain when the bank starts to question it!
2. Sports bet/gambling: Depending on the scale that an individual is gambling however always make sure you’re not gambling beyond your financial means.
3. High spending levels: Buy whatever you like but just not out of your means!
4. Excessive alcohol purchases: A quiet beer or wine after work never hurt anyone, just make sure it’s not putting you in debt.
5. Undisclosed debt: Simple rule, declare it, the banks can find out everything.
6. Afterpay/buy now pay later schemes… this one is a very misunderstood spending habit. Some banks will add this to your living expenses which is not usually an issue, however, other lenders consider it a personal loan e.g. $1,000 limit (4 fortnightly repayments = $541.67 as a monthly repayment.. which is HIGH 😲) Banks will usually look at 3-6 months worth of bank statements, sometimes it can be up to 12 months depending on your circumstances.
**These are completely circumstantial and will vary depending on your personal situation and the lender however giving yourself the best possible chance by ensuring your statements aren’t causes for concern is in your best interests.