PHOTO: Banks are beginning to question home loan applicants’ use of ‘buy-now-pay-later’ services such as Afterpay. Photo: Dominic Lorrimer

Sydney first-home buyer Violeta Ramirez, 33, never thought her shopping habits with buy-now-pay-later apps would come back to haunt her until she and her partner applied for a mortgage.

“When they were doing all the checks, handing over all the documents, the bank came back to me and said, ‘Do you have an Afterpay account?’,” she said.

They told me to provide a statement and show that it had a zero balance. It’s one of those things that we didn’t even think about.”

She said she never expected to have to account for her spending, nor the extra requirements from the bank to show where her money had gone in past months.