How food delivery could derail home loan applications


By Gerv Tacadena |

Homebuyers who frequently order food via apps like Uber Eats could be derailing their chances to get approved for a home loan as banks start to scrutinize spending habits to weed out those without financial discipline.

Endeavour Homes managing director Craig Endeavour told The Daily Telegraph that approval for homes has become quite difficult for many buyers, since even their dinner choices could raise a red flag for lenders.

“The banks are simply not lending anyone any money. It is across the board. It is first-, second- and third-home buyers. These people can’t get the funds,” he said.

Gemmill explained that the Australian Prudential Regulation Authority and the banking royal commission have been pressuring banks to tighten up their borrowing rules. Previously, banks only checked the incomes of prospective borrowers minus their big spending and exposure to credit cards — now, even their bank statements and how often they use food delivery services are being examined.

“Banks haven’t changed their guidelines, but they are just applying them far more stringently now,” he said.

Mortgage Choice chief executive Susan Mitchell shared similar insights, noting that borrowers would have to justify even small allotments for food, going out, hobbies, travel, and clothes.

However, she said there was no reason for buyers to become annoyed or even discouraged to apply for home loans. Buyers just have to be patient and stay updated on the policies offered by their chosen lenders, Mitchell said.

“It is now taking longer for a loan to progress from application through to settlement. Make sure you are organised before you apply,” she told The Daily Telegraph. “It’s not just a simple process anymore. Technology has been a real game changer. No one uses cash, so everything can be tracked when you use your cards.”


Gemmill Homes has recently changed its name to Endeavour Homes!!!

We are excited with the new name Endeavour Homes, business has been great for our customers and us last year, despite all the craziness of 2020.

Here are some wins:

1. Every one of our display homes won MBA awards in their categories.

2. One of our homes even won an MBA best home in Australia.

3. Most importantly, we have built some beautiful homes for our clients.

Why the name change you may ask?

Here are the two main reasons:

1. We reinvented the way we help clients and have a new way to provide better service, better quality and happier clients than ever before. We want to celebrate these changes with our new name.

2. We want to align the business name to our sister brand Endeavour Constructions as the business has been owned by the same family since our inception in 2004.

Anyway, enough about us…now it’s your turn, have a look around our website and see how we can help you.

All the best the Endeavour Homes Team