Does Betting Online Affect Your Mortgage Approval or Application?

Kirk Haverkamp
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Kirk Haverkamp
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For mortgage lenders, the ability to pay back what you owe at the agreed time is an important consideration. Anything that could affect your capacity to make the payments on time is a source of concern.

Betting, or gambling, according to the American Psychological Association, is risking something of value in the hopes of obtaining something of greater value. Betting can take many different forms. Recently, online betting, especially sports betting, has grown in popularity around the world. 

For the average bettor, gambling is done primarily for entertainment purposes. For them, gambling is not a problem behavior, and as such, is not likely to concern the lenders. It is the people with regular or problem gambling that are likely to be a source of concern to mortgage lenders.

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When Will Gambling Affect Your Mortgage Application and Approval?

When your gambling has a negative impact on your finances, you are not likely to get approved for a mortgage. If you regularly take out credit to place bets, or the money you spend on gambling represents a significant portion of your income, you will be considered too big a risk by the underwriter.

Also, professional gamblers (people for whom gambling is a primary source of income) are unlikely to be able to take out loans based on their gambling winnings. This is because gambling is generally regarded as an unstable profession. Gambling is very high-risk, and winnings rarely come in very consistently. 

Even if you can afford to take out a mortgage now, there is no way to know if that will remain the case for the rest of your loan term. Even if you are able to find a lender willing to work with you, the interest on your loan is likely to be higher than normal. You may also need to pay more as a down payment. This is to compensate for the increased risk associated with your gambling.

When is Gambling Not Likely to Affect Your Mortgage Application?

During the loan approval process, lenders look at a lot of things. One of those is your bank statement for the previous 3-6 months. Any deposits to gambling sites will be noticed by the lender.

However, this is not likely to be a problem if you bet only occasionally, and you bet within your means. The primary concern is how much of a risk you are. As long as you are not a compulsive gambler, and you don't make most of your income from betting, it shouldn't be a problem.

Tips to increase your chances of mortgage approval

Stop Gambling

It is advisable that you stop all forms of betting at least 3 months before your mortgage application, even for occasional gamblers. If you are having trouble quitting, it could be indicative of an addiction. You should seek help from qualified personnel.

Clear Your Debts

Your debt to income ratio is important to lenders. Clearing as much of your debt as you can will improve your chances of getting approved for a mortgage. 

Conclusion

Applying and getting approved for a mortgage is a tricky process. It can be affected by a lot of factors. 

Betting, whether online or offline, can affect your mortgage application. This applies mostly to problem gamblers. But it can also apply to occasional gamblers, especially if there are other concerns for the lender. You should talk to a mortgage broker for advice on your particular situation.

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