Boomie

Help wanted!


Any1 out there living in Au been able to get a decent mortgage if they have kids????


for example...... one income earning $40K per year

-no kids you can lend $179K

- 1 child you can lend $156K
- 2 children you can lend $133K
- 3 children you can lend $111K
- 4 children you can lend $88K
- 5 children you can lend $65K

We have 5 kids hence i go no further - the repayments are $201 per fortnight.......

at the moment we pay $1360 every 4 weeks and have done for the last 8 months..... how can mortgage lenders say we cant afford!!!!!!!

We have the money to buy either the house or the land so its not as if we arent contributing in any way.....

How have peeps with kids managed to get out of rented accommo?

If you dont want to post on here PM me.....plz, plz

Advise to those without kids...... keep ure legs crossed until u have secured your future downunder!

boomie
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In 2+ years of using this site I have not heard of this kid related lending restriction.

Would be interested to see any answers!

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moneypenny20

Errr? How the hell does that work? What's it got to do with them how many kids you've got. That's crazy. Where's the scratch head smilie

Phoenixuk2oz

Boomie...not sure who's given you this advice but seems dodgy to me.

We were informed that if we have a minimum of 20% deposit and jobs that cover the payments, then no worries.

Our jobs were / are temp [as is norm here] and so long as we'd been there 6 months then not a problem.

Get yourself a mortgage broker, normally free service provided by a decent real estate.

Good luck

Boomie

you have to say how many dependents you have....... and if you have a visa card the limit of that is knocked off ure lending power

boomie
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fraser

I suppose it's all to do with how much money you need to spend for the upkeep of said kids.

So basically the more kids you have the more room you need = the less mortgage you get the less room you get

Pollyana

Thats crazy Boomie! Is that a general thing from all the lenders? I knwo they have daft rules about giving you a mortgage if you ahve a credit card - we even fell foul of this one trying to get a loan for a car. The Bloke had a credit card with no balance on it, but a limit of $3500. Even though we didn't owe any money on the card they woudldn't give us a loan until he had got his credit limit dropped to $50.
ABC might have some ideas - he's a mine of info on mortgages

ABCDiamond

It is actually a common calculation with many lenders. It's based on deciding how much of your income your family needs to live on before taking account of what you can afford on a mortgage.

And yes it is time.

However, a Mortgage Broker may be able to help.

This one is supposed to be pretty good, and local.
Moreton Bay Property Financial Services (Proudly 4th Generation in the Redlands)
Neville Hayes Janette Hayes
B.Econ.FAIBF.JP (QLD) Com.Dec
Mobile 0419 652 338 Mobile 0417 770 973
Email: mbpfs at b igpond.com
Tel: (07) 3207 8331
Fax: (07) 3207 8864

Boomie

omg..... tel me who text u so quick - just to let u know boomie is stressin!


thanx for that ABC..... will follow it up

so have i not misunderstood the way ov thinking ABC - i know im blonde!


regards


boomie
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bal56

I've got five kids and I'm going bald (could these two things be related??) ... and at this rate will be renting for a while in Oz.
Needless to say I'll be watching this thread!

Boomie

lol.... only just discovered the headache!


but joking apart it is worrying isnt it....... We came over here no family in Au to advise.... so felt i had no choice to ask on here....

I realise that it isnt the kinda thread peeps want to read who are about to commit to a new life downunder but feel that its an issue which needs to be considered prior to giving up all you have.... what with the job situ and now this we may of thought twice to be honest!

boomie

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ABCDiamond

What you have said is pretty common, you just need to know how to work the system at times.

Before applying for the mortgage you should also zero your credit card limits, or convince the lender not to take them into account, but you then must be able to prove that you repay the balances in full each month.

I've even heard of couples splitting up, the breadwinner then applies for a mortgage, as a single person, then they get back together again

Badge

Boomie - the credit card thing is quite reasonable - but - get an independent mortgage broker - they will swing things, scratch backs and rub noses (!?) etc.

I was a contractor - no matter - my broker told a white lie and I got the mortage no worries however I was only borrowing 3 times the National Av salary and 1.5 my own so they weren't too concerned.

a good broker will know which company to approach depending on your situation.. as I was a contractor, my broker approached the bank who ask fewer questions about docs. Perhaps we ended up paying .25pc more but we just wanted to get on the mortgage (and housing) ladder.

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NickyC

It's all true.

Credit providers have a legal obligation not to lend you more than you can afford to repay. You have to have enough cash left over, after making all credit repayments, to support your family. And the surplus amount required, varies according to how many dependants you have. There's an official index which specifies these amounts.

Providers have been burnt in the past, by people taking on more debt than they can afford, and then not being able to make repayments without their kids starving. Banks have even been sued - 'it's all the evil bank's fault, they forced us to borrow too much money'.

Hence, they now have these rules.

http://www.infochoice.com.au/banking...ticle12563.asp

Phoenixuk2oz

[QUOTE=ABCDiamond]It is actually a common calculation with many lenders. [/QUOTE

It is a common calculation...however the borrowing / lending ceiling is also based on a mixture of earnings and deposit paid ....rather than just how many kids anyone has. So stating X based on XX kids is nonsense. Hence comment re info being "dodgy".

As ABCD says, see a broker Boomie.......they'll break their neck to get you a "cafeteria" style mortgage