Will ZipPay and Afterpay affect my home loan?

The answer is, yes.

Firstly, let’s understand what these payments are:

Payment methods that allow you to “buy now and pay later without interest”, which is similar to a lay-by. They aren’t loans or credit cards, it allows customers more time to pay back what they’ve borrowed. The payment schedule can be flexible, ranging from weekly to monthly.

Now, we’re not saying that this will cancel out your application altogether, but they can affect your credit rating and your chances of getting a home loan if you don’t meet repayments. Just remember, these payment companies reserve the right to report negative activity (missed payments) on your credit history which is the same for any line of credit you have like credit cards, home loans etc.

Another thing to be aware of is when a bank or lender looks at these payments, they classify this under the expenses column, meaning – Expenses can be higher than you thought!

They also look at this as ‘living above your means’ which can potentially be a red flag for banks and lenders.

Overall, yes Zippay and Afterpay can affect your home loan application but it doesn’t mean it’s a no, it just means there may be some roadblocks ahead if you keep ‘adding to cart.’    😉