Why do lenders request bank statements?
As rule, when a refinance of a particular loan is to take place between one lender to another, the conduct of the existing loan facility is scrutinized for good conduct or bad conduct.
Benefits of showing only three-months’ worth of statements?
Having the ability to show only 3 months loan conduct is helpful to some clients, as it provides limited information to the new incoming lender.
This policy can assist clients who have previously been late or in arrears with their loan repayments. Otherwise, if they were to show more than three months’ worth of statements, it would hinder their ability to refinance or raise additional funds.
The 3 months refinance statement rule benefits the client as it allows them to refinance with a major bank up to 90% LVR. Otherwise they would have to go through a non-conforming lender who whose interest rates would not be as competitive.
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