"Does the lender really need all this information?" Short answer is Yes! (We aren't asking for all of it because we like paperwork!) Responsible lending obligations were first introduced in 2011. There were 3 main requirements which broadly covered the key concept that lenders must not enter into a loan if its unsuitable for the client. The 3 areas addressed were Inquiries: Lenders must make reasonable inquiries about a consumer's financial situation, requirements, and objectives. Verification: They should take reasonable steps to verify a consumer's financial situation. Assessment: If providing credit assistance, lenders make a preliminary assessment; if they are the credit provider, they make a final assessment to determine if the credit contract is "not unsuitable" for the consumer. Updates to these obligations have been made & the Royal Commission made recommendations which have been embraced by Brokers and Banks. This all forms a larger need to get more information.

This legislation has meant that lenders (& therefore Brokers) have to ask a lot more questions than previously to ensure they satisfy all the requirements. The fundamental questions are still the same:- What do you earn? What do you spend? What other assets & liabilities do you have? How much deposit do you have? What is your Credit rating like? ..... and so on. The difference now is there is a greater emphasis on proof. This means you can expect to have to provide up-to-date evidence in all these areas including bank statements on all accounts. The other items you will be asked for is a budget of your estimated expenses. This can be a sobering experience for many clients as they have often not really planned their expenditure to this detail. Given applicants are seeking to borrow significant amounts it is a good thing that there is greater emphasis in these areas.

For self employed clients you can expect lenders to want full disclosure around shareholding for any companies & Trustees, beneficiaries for any Trusts.