Homebuyers warned against common mortgage mistake after $150 issue: 'Dumbfounded'

Yahoo

08-05-2025

Mortgage broker David Pelligra said homebuyers can make a big mistake by getting a loan with the same bank they're already with. (Source: TikTok/Getty)
Australians keen on entering the property market soon are being cautioned against getting a mortgage with a bank that they're already a customer with. It might seem like a common-sense move, especially if you've been with that bank for years, but it can end up delaying your application.
Mortgage broker David Pelligra told Yahoo Finance he experienced this first-hand with a recent client. He was shocked when he received a call from the lender, who asked about a single transaction in his client's bank statements.
"It's something you come across quite often when you apply with a bank that the client's already with," he said.
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"Mostly because they've already got the client's financial data, which generally isn't a problem.
"But when we go to other banks, it's not to say we're hiding anything, it's that we only need to provide the lender with what they need."
On the phone call, which the Wealth Point Lending broker described as the "most ridiculous" he's received in five years, the bank wanted to know about a $150 transfer the client made to a friend.
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Even though the transaction was clearly labelled as a wedding gift to a friend with whom she had transferred money to before, the bank wanted to double-check with Pelligra that it was legit.
This same client periodically transferred rent to their housemate, and even though it was also clearly labelled as such, the bank asked the mortgage broker for a please explain.
He said this is the type of scrutiny you can face when a bank has access to all your information.
How much do banks need to know about your money?
Normally, when you submit your financial information for a loan, which usually goes back around three months, a broker will ensure your salary and living expenses match what is on your mortgage application.
But a bank that you're already with can dive into every single movement of your money over those 90 days if they wanted to be sure everything stacked up.
"I tried to call the assessor just to see the rationale behind the question, because I was dumbfounded myself," Pelligra told Yahoo Finance.
"I understand the creditor assessors are doing their job and they need to dot their i's and cross their t's at all times. I'm not gonna bash them for that.