Your Guide to Mortgage Loans and Gambling Responsibly
Some people worry about filling in a house mortgage application with a lender because they like to enjoy the occasional flutter and think it will cause a problem. Whether you like to visit an online casino from time-to-time or to place a wager on the outcome of some great sporting event, there is no need to worry about admitting this on your mortgage application. Indeed, it is often better to be truthful about all of your monthly expenditures because not doing so could invalidate the whole process.
The average online casino in Canada provides a welcome form of entertainment that is just like any other fun thing you might choose to spend your disposable income on, such as going to a restaurant or subscribing to a TV streaming service. By far the majority of mortgage lenders know that their customers will have a range of interests and that includes enjoying gaming for fun.
The only issues arise when such an activity is not done responsibly. That would apply to anything people get carried away with, such as buying too many collectables, for example. So long as your enjoyment is within reasonable limits and you can afford to make your monthly mortgage repayments, then it won't be an issue for your mortgage application. That said, there are some important things to take into consideration. Read on to find out more about the ways in which gambling is taken into account by mortgage lenders these days.
Financial History
The first thing to say about a mortgage application is that it will be checked thoroughly by the mortgage lender. This is not to try and catch you out but to confirm that your financial history and your credit rating match the things you are saying about yourself in your application. Not to do so would be irresponsible. After all, taking out a mortgage is often the greatest financial commitment in most Canadians' lives. If you are lent more money than you can reasonably expect to pay back over the term of the deal, then your mortgage lender is effectively setting you up to fail.
Therefore, assessing all of your financial incomings and outgoings in recent years is just as much in your interests as it is in a lender's. Defaulting on any loan benefits no one, after all. This means that spelling out what sort of gambling you like to engage in – from online casino games to playing lotteries – should be detailed in your application. It is a part of your financial history and is just as relevant as how much you spend in the average month on groceries, insurance and repaying other loans you may have. Most mortgage lenders will look at your recent bank statements and soon be able to assess the affordability, or otherwise, of your future repayment commitments easily enough, taking into account all of your typical expenditure.
Declined Mortgages and Gambling
Okay, so although betting here and there is an accepted part of normal expenditure from disposable income, mortgage applications are still sometimes declined. Why? The short answer is that if your bank statements reveal that you are spending most, if not all, of your monthly disposable income, then your mortgage lender will see a pattern of behaviour. This may include betting but it will also factor in all of your other non-essential purchases. Anyone who is nearly maxing out their available income each month may not be suited to mortgage repayments that exceed or even merely match their current rental outgoings. What mortgage providers want to see is someone who spends normally but within their limits, ideally saving a bit for a rainy day as they go.
If your bank statements show that gambling expenditure makes up part of such a lifestyle, then your application may indeed be turned down. Where it shows large swings in expenditure is another matter, however. For example, if you barely spend anything on gaming but then show lots of money being withdrawn to gamble with or to top up an account with a bookmaking firm, mortgage lenders will tend to be more cautious. It does come down to personal circumstances, of course, but wild fluctuations in gambling expenditure tend to raise alarm bells. What mortgage lenders are concerned with is that the individual in question will prioritize gaming over making their loan repayments – never an advisable thing to do.
Getting a Mortgage Sorted
At JackpotCity, we have a raft of measures in place to support responsible gambling and to encourage our customers to have fun. If your financial history shows that you now gamble responsibly but your proposed lender is still not interested in offering you a mortgage, then you can turn to brokers who deal with specialist financial products. Some lenders have different policies with who and how much they will lend to but it may mean your interest rates are consequently higher to mitigate any perceived risk on their part. If you enjoy a regular income, have been saving for the last six months and only gamble with modest sums for fun, then a mortgage deal is probably waiting for you somewhere. It may just be a question of looking a little further afield if you have been declined in the recent past.