Your funny money transfer labels could mean you can't get a home loan

trending 04/10/2019

We all do it - you owe your friend money so decide to have a little fun with the bank transfer reference labels. 

Whether reimbursing your mate for dinner, an uber ride or a bday gift, it's always more fun to put something like "for the sex" or "last night" on the transfer. Don't even try to pretend you don't do it. 

Turns out doing this can actually have an impact on whether or not you can take out a home loan down the track though. YIKES.

When you apply for a loan, it's someone's job to look through your transaction history apparently. And according to Domain, lenders are now worried about home buyers spending too much money on sex workers - when it's really just you paying for dinner and trying to be funny. 

Joke transaction labels are "maybe not the best idea", says Chris Foster-Ramsay, principal finance broker at Foster Ramsay Finance.

"If that person happens to be in the property market at that time, the bank’s going, 'Hang on, what’s this?' Particularly if there's $50 here or $50 there," he said.

"[Banks ask,] 'Is it adult entertainment?'… If that happens over a period of time, the bank is picking up on it."

"Bank statements are a legal document," he added. "You have to be semi-serious about it. As fun as it may be, it’s not advisable to be creative in the transfer text."

It's not just funny labels we have to worry about though. People have been knocked back for mortgage applications in the past for overuse of Uber and Uber Eats and things like overdue Netflix fees. Ok, we're in serious trouble now. 

Time to be a bit more careful with our spending and transactions if we ever want to get a house then...