Why do banks want to know about your living expenses?
Nowadays, banks are asking a lot of questions around you living expenses. The simple answer is the banks need to understand that you can afford the loan.
Living expenses are a month-to-month commitment, just like your car loan and credit card re-payments. The banks want to know exactly where and what you are spending your money on, from things such as groceries, entertainment and even something as little as Netflix.
Going forward, you need to ensure you are bank ready. As you prepare for your loan application, collate your bank statements and review your spending habits.