Advertisements
After Pay, Zip Pay and Open Pay - companies that offer post-paid shopping experiences - have grown rapidly in recent years, especially among 18-34 year olds

Lenders warn that buying now, paying later, paying millions of Australians could cost their dream home.

Advertisements

After Pay, Zip Pay and Open Pay – companies that offer post-paid shopping experiences – have grown rapidly in recent years, especially among 18-34 year olds.

But the mindless, easy-to-use services are not recognized by many users as a formal debt and are often not indicated during loan requests.

After Pay, Zip Pay and Open Pay - companies that offer post-paid shopping experiences - have grown rapidly in recent years, especially among 18-34 year olds

After Pay, Zip Pay and Open Pay – companies that offer post-paid shopping experiences – have grown rapidly in recent years, especially among 18-34 year olds

As a result, many home seekers have provided inaccurate information that extends their request or builds up debts that make them unreadable.

Retailer Hayley Mott felt the consequences firsthand when she was almost rejected for her home loan due to an outstanding payment after payment.

Advertisements

& # 39; I think it was a pair of jeans and a new jacket, & # 39; she said Seven news.

& # 39; The bank runs your finances with a fine comb, but it was something that I never even thought would be interested. & # 39;

A spokesperson for Mortgage Choice told Daily Mail Australia that people can face significant setbacks if they do not provide all the information.

However, they stated that pay-later services are not specifically listed on application forms as debts that applicants must consider and can therefore easily be forgotten.

& # 39; When you submit an application, come to you and tell your lender about the amount of any debts that you may have at the time of the application to prevent you from delaying the time to review the application, & # 39; said the spokesman.

The spokesperson also confirmed that although incorrect information can cause delay, each case is still judged on how competent the applicant is to make payments.

The Afterpay platform, developed in Melbourne, allows borrowers to create four equal interest-free installments, making it in fact a 21st-century version of old-fashioned parking places at department stores.

Advertisements

Cheryl Brown, a mortgage broker with eChoice based in southwestern Sydney, said that a consumer with rising debts from a platform like Afterpay risked being refused a home mortgage or a personal loan from a bank.

& # 39; If you cannot afford the small things, then you will not afford the big things such as paying a mortgage or buying a car loan, & # 39; she told A Current Affair.

& # 39; They see it as short-term money. & # 39;

Afterpay, a technology company based in Melbourne, is increasingly becoming a popular tool for people who want to buy goods without paying in advance

Afterpay, a technology company based in Melbourne, is increasingly becoming a popular tool for people who want to buy goods without paying in advance

Afterpay, a technology company based in Melbourne, is increasingly becoming a popular tool for people who want to buy goods without paying in advance

Cheryl Brown, a mortgage broker with eChoice based in Sydney, said that a consumer with rising debt levels was at risk of being refused a home mortgage or a personal loan from a bank
Advertisements

Cheryl Brown, a mortgage broker with eChoice based in Sydney, said that a consumer with rising debt levels was at risk of being refused a home mortgage or a personal loan from a bank

Cheryl Brown, a mortgage broker with eChoice based in Sydney, said that a consumer with rising debt levels was at risk of being refused a home mortgage or a personal loan from a bank

Anthony Eisen, the executive chairman and co-founder of Afterpay, told a senate committee in February that the average transactions were $ 150, suggesting that it would be a privacy violation to control consumer spending.

Although Afterpay has interest-free periods, it charges $ 10 for purchases of less than $ 40 for late repayments on top of another $ 7 for repayments that are more than a week late.

The $ 2,000 credit limit from Afterpay is much lower than the $ 12,000 limit that is often set on credit cards.

Although Afterpay has interest-free periods, it charges $ 10 for purchases of less than $ 40 for late repayments on top of another $ 7 for repayments that are more than a week late
Advertisements

Although Afterpay has interest-free periods, it charges $ 10 for purchases of less than $ 40 for late repayments on top of another $ 7 for repayments that are more than a week late

Although Afterpay has interest-free periods, it charges $ 10 for purchases of less than $ 40 for late repayments on top of another $ 7 for repayments that are more than a week late

It is also less than the $ 6,000 banks such as ANZ set up for its customers who have a home loan with them.

Yet Australians already have some of the world's highest debt levels, with mortgages, credit card accounts, and personal loans that now make up 189 percent of household income, compared to just 60 percent 30 years ago.

. [TagsToTranslate] Dailymail