Just when we thought it was getting tough to get Mortgage approvals ASIC has tightened the reins again. By July 2019, when a bank is assessing a borrowers ability to repay their debts and live within their means, they will be required to ensure that a client has sufficient capacity (after they have paid their new mortgage etc) to be able to pay off all credit card limits in full within 3 years.
We see many clients with over $50,000 in credit card limits. This would mean that we would need to add to their monthly expenses approx $1,400 per month on top of interest costs. We certainly advise all clients to have a look at their credit card balances. It might be time to start cutting up some cards and paying hem out!