Jump to content

New member please read
Advice we can't get a mortgage!


  • Please log in to reply
116 replies to this topic

#1 Fillama

Posted 11 January 2013 - 09:43 AM

Hi all, I'm new to this forum just needed to get our story out there and see if anyone has helpful advice. My husband and I recently tried through 2 different lenders to get a home loan, we aren't trying for a huge amount 315,000 would be enough to build home and land. Initially we were approved but then knocked back when they realised how much child support my husband paid. He pays $120 a week. We have 3 children at home, the eldest 2 are mine from a previous relationship and I receive $91 a month for them. It's true that my husband isn't on a huge income just under $60000 a year but we know that we can easily manage a mortgage. It just kills us to know that we are getting knocked back because of child support we have to pay, we have been told to pretty much wait until the child turns 18 when child support payments hopefully cease sad.gif to me that feels like a lifetime away when we want to own our own home so badly. I was wondering if anyone had been in a similar situation or even had any helpful advice?

#2 MintyBiscuit

Posted 11 January 2013 - 09:51 AM

I haven't been in a similar situation, but have you tried talking to a mortgage broker? They should be able to take all your circumstances into account and try to find you something. I know lending criteria has become a lot tighter in recent years and every extra child adds something like $15k to what they calculate your expenses at, so I imagine it would be quite tricky for you.

Good luck original.gif



#3 justcait2

Posted 11 January 2013 - 09:52 AM

We always struggle to get a loan as we own a business and although we get paid a normal wage each the big 4 banks wont touch us so we went with RESI and have had no problems, perhaps look at a credit union or other smaller lender.

Also if your mortgage repayments will be the same as what you are paying in rent then some lenders will take that into account also



#4 Madnesscraves

Posted 11 January 2013 - 09:53 AM

That doesn't sound right.

I'd be contacting a broker, like Aussie home loans, they do all the leg work for you and will find you the best bank to use. It may end up being not part of the big 4, but a credit union.

Secondly, there could a more contributing factors, like do you have a deposit? is it 10-20% of the purchase of home? Do you have a credit card? Credit cards can actually decrease the loan as they look as if you borrowed the credit limit amount even if you don't use it or pay it out every month.

There is just so many small things. I'd just be contacting a broker. They will find you someone who will accept you.


#5 niggles

Posted 11 January 2013 - 09:54 AM

I'm sorry you are finding it so difficult. sad.gif Obviously I'm not sure of you expenses and every family is different but we have a mortgage about that size and don't consider it a small one. Our income is higher than yours even when we rely on the one income and we really struggle to make ends meet while I'm not working. It's a big stress and I wouldn't wish that as a long term situation on anyone. I guess my point is that perhaps it would help you to do the sums again. Would more than 30% of your income be going towards the mortgage repayments? It might help you to see why the lenders are making the decision they are.

Also have you spoken with a mortgage broker? They may be aware of products you haven't looked into that might suit you. And they don't cost you anything so it's worth talking to one. Much easier than approaching each individual lender yourself.

#6 Beanbag Warrior

Posted 11 January 2013 - 10:00 AM

Our mortgage is $292k, borrowed in June 2012.  Our repayments are $820 a fortnight (they've been left here since rate cuts.  I think nominally the rate is about $800/fn).  DH is on about $50k.  We would struggle to pay on one wage, with no kids.  I find it hard to believe, and I'm sure the banks do too, that you would find it as easy as you believe to pay off a $315k mortgage on $60k with $120 in extra expenses that "normal" families don't have.

Plus, any issues with how much you've saved in deposits, lenders mortgage insurance etc.

#7 ~Jodama_Feral~

Posted 11 January 2013 - 10:22 AM

Thats a very big mortgage for that income. You repayments alone would be around $1500, if not more. And with paying out child support it lessens you household income again.

You could approach a mortgage broker and see if they can help but I would look at purchasing a cheaper house instead of building or waiting until you have a larger deposit to bring the loan amount down a considerable amount.

Edited by kriattica, 11 January 2013 - 10:23 AM.


#8 Fillama

Posted 11 January 2013 - 10:22 AM

Oops I forgot to add that with my income from my part time job and FTB that it adds $29,000 to our income. That's why we wouldn't find it too much of a pinch. But I was told by the finance officer that they mainly look at the first income which is my husbands. We have a 5% deposit, one of the lenders only required 1%. We have no credit cards, no debts, own both of our cars with no money owing on them

#9 Let_it_Rain

Posted 11 January 2013 - 10:25 AM

I agree with the PP.

I'd love to see the budget that would allow you to afford that level of borrowing on the income stated.

However banks are not allowed to trust your budget anyway, they have minimum amounts that are set as living costs.

24k repayments (allowing a bit for interest rate fluctuations) on under 50k net would be really hard before adding in the 6k in child support.

Do you really think you could live and support three kids on 20k plus whatever FTB you receive?

I put your figures (and I approxed a few things such as FTB income) into a "How much can I borrow calculator" for one of the more "generous" lenders and they say you could borrow $150k.

Banks do say no for a reason, not just to be frustrating or ruin your plans.

-----

Okay you did a major update while I was typing, that makes it more affordable, but a 1% deposit is super low. Are you able to show a savings history? You will have to pay lenders insurance which isn't cheap and also is an extra level of approval (the insurer has to approve it).

In this market if you can get a loan with such low equity it is a big risk that you will end up with negative equity if something does go wrong.

If you are determined to buy, try a broker or non-bank lenders.

Unless you are going for a loan in just your husbands name, your income (and expenses) will be considered as well so that person was an idiot.

Edited by WinterDancesHere, 11 January 2013 - 10:32 AM.


#10 niggles

Posted 11 January 2013 - 10:29 AM

We would struggle to meet our repayments even with that extra $30k but your best bet is still to talk to a mortgage broker.

#11 Apageintime

Posted 11 January 2013 - 10:30 AM

I have a mortgage about the same.

I personally earn more than twice what your husband does, and my husband earns a little less than yours.

We have no kids, and no other debt, and this mortgage is just what we're comfortable with. I don't know how you would be comfortable with that size loan!

also, maybe its not just the loan amount, but the fact you're building, which is always riskier to banks to lend money for something they can't touch.

Talk to a mortgage broker, but you may need to look at buying an established house.

#12 Fillama

Posted 11 January 2013 - 10:30 AM

We would have approx $750 left per week after each repayment. I don't know abut others spending habits but for us that's more than enough to comfortably survive on. We were told by both lenders we would qualify for $240,000 the other was a bit higher at $246,000 but that's just not enough for a house were we are

#13 PatG

Posted 11 January 2013 - 10:37 AM

I think that they may look at you differently if you can come up with a larger "saved" deposit.  5% is very low.  What are you paying in rent at the moment and how does that compare with the expected repayments?  Have you factored in extra costs of owning a home cf renting?  Home insurance, rates, water (depending where you live)......  And what will the repayments be if interest rates rise?

Edited by PatG, 11 January 2013 - 10:39 AM.


#14 ~Jodama_Feral~

Posted 11 January 2013 - 10:39 AM

Your figures dont add up right. If you pay $120 a week  child support, still have $750 to live on and can make the repayment. You must earn a lot more than $60000. Because them figures alone come to $60000 and thats without taking tax into consideration.

Edited by kriattica, 11 January 2013 - 10:41 AM.


#15 Fillama

Posted 11 January 2013 - 10:40 AM

Hi patG that's what are going to do now save for a larger deposit, we pay $420 in rent and we were told our maximum repayments would be $453

#16 Rosepickles

Posted 11 January 2013 - 10:41 AM

Hi Op,

It is awful when that happens. The banks have become quite strict after the GFC. Having three children at home also reduces your borrowing power a fair bit.

I would definitely talk to a mortgage broker, but it sounds like you might need to save a larger deposit. This will also reduce the mortgage insurance you will have to pay (you pay this when you borrow over 80% of the house value). This will save you a lot of money and also increase your borrowing power a little.

Our current loan is based on $315k also and we pay around $450 a week. We have a slightly higher income than yours and we can very comfortably afford to pay that amount and more so I understand why you say you can afford it.

Good luck original.gif

#17 Fillama

Posted 11 January 2013 - 10:43 AM

Kriaticca, with my part time job plus FTB that adds nearly $30,000 to our annual income. They are just running off my husbands income as its the "first" income

#18 Fillama

Posted 11 January 2013 - 10:45 AM

QUOTE (Rosepickles @ 11/01/2013, 08:41 AM) <{POST_SNAPBACK}>
Hi Op,

It is awful when that happens. The banks have become quite strict after the GFC. Having three children at home also reduces your borrowing power a fair bit.

I would definitely talk to a mortgage broker, but it sounds like you might need to save a larger deposit. This will also reduce the mortgage insurance you will have to pay (you pay this when you borrow over 80% of the house value). This will save you a lot of money and also increase your borrowing power a little.

Our current loan is based on $315k also and we pay around $450 a week. We have a slightly higher income than yours and we can very comfortably afford to pay that amount and more so I understand why you say you can afford it.

Good luck original.gif


Thank-you for verifying that Rosepickles! I was beginning to feel like i was under some sort of scrutiny! Xo

#19 ~Jodama_Feral~

Posted 11 January 2013 - 10:46 AM

I would be asking questions then because unless you are just putting into your husbands name then it should be based on joint incomes. We never had that happen before and even when I have only had FTB to add to the income it still counted and helped.

See a mortgage broker.

#20 Fillama

Posted 11 January 2013 - 10:50 AM

Thanks so much for the advice guys, yeah we will definitely go and see a mortgage broker. I'm not sure why they are only going on my husbands income. The finance officer told me of a guy that she had a few weeks ago and he worked 2 jobs, even though the officer pleaded his case the lenders still knocked him back because they only went on one of his jobs incomes. Also we were going to go through key start which meant we didn't have to pay the lenders insurance

#21 BookishOne

Posted 11 January 2013 - 10:58 AM

QUOTE (Jetay @ 11/01/2013, 11:50 AM) <{POST_SNAPBACK}>
Thanks so much for the advice guys, yeah we will definitely go and see a mortgage broker. I'm not sure why they are only going on my husbands income. The finance officer told me of a guy that she had a few weeks ago and he worked 2 jobs, even though the officer pleaded his case the lenders still knocked him back because they only went on one of his jobs incomes. Also we were going to go through key start which meant we didn't have to pay the lenders insurance


When we took out our first loan years ago I was still studying & working casually (but permanent / rostered casual with regular shifts) & the bank would only take into consideration $10000 of my earnings because I was 'casual' not 'part time'. Could this be the issue? That's the only reason I can think of why they wont take into account your wage. It was a real pain at the time, I had been working at the same place in the same position for about 4 years and my earnings never dropped below about $35000, quite often it was way over, but the bank wouldn't budge. Just an idea...

#22 *melrose*

Posted 11 January 2013 - 11:02 AM

It's so hard out there, good luck op i am sure someone will help you original.gif

#23 niggles

Posted 11 January 2013 - 11:02 AM

I think you mentioned your $30k income includes government benefits? I'm not sure but wouldn't think that would be taken into account?

#24 emnut

Posted 11 January 2013 - 11:56 AM

QUOTE (Rosepickles @ 11/01/2013, 11:41 AM) <{POST_SNAPBACK}>
Hi Op,

It is awful when that happens. The banks have become quite strict after the GFC. Having three children at home also reduces your borrowing power a fair bit.

I would definitely talk to a mortgage broker, but it sounds like you might need to save a larger deposit. This will also reduce the mortgage insurance you will have to pay (you pay this when you borrow over 80% of the house value). This will save you a lot of money and also increase your borrowing power a little.

Our current loan is based on $315k also and we pay around $450 a week. We have a slightly higher income than yours and we can very comfortably afford to pay that amount and more so I understand why you say you can afford it.

Good luck original.gif


Yes but you have 2 child not 3 and do you pay any child support let alone $120/week in child support?  Big big difference there.

With a low deposit you usually need a higher income to borrow equivalent amounts as that is definitely a consideration.  Also how long have you worked part time for?  If less than 2 years then that is not usually considered at all and part time is considered differently to full time income and FTB is often not taken into account at all

Edited by emnut, 11 January 2013 - 11:57 AM.


#25 Giota

Posted 11 January 2013 - 12:11 PM

Honestly that is a big loan for a smallish income. But in staying that I have double the debt on only a slightly bigger combined income and we manage not easily though.

Just bear in mind your hubbies child support will go up considerably when the child turns 13. Also I don't know if this is the case for you but some lenders are happier to loan for asn existing property rather than to build.




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Special Ticket Offer, Save $8!

The Essential Baby & Toddler Show is back this April! Save $8 off the door price for a limited time only!

Why I breastfed my son until he was three

The fact that I not only breastfed my son, but breastfed him for three and a half years, seems pretty incredible in retrospect.

Do babies and young children see ghosts?

Do babies and young children see ghosts? If you’ve pondered the question, you’re not alone.

15 years with Essential Baby: meet Therese

"Life has a funny way of giving you what you need when you need it the most."

Mum causes a stir by taking a stand against leggings

A mum has found herself the subject of debate after claiming tight bottoms cause lustful thoughts in men.

Don't set a parenting goal for 2015 - do this instead

The problem with goal setting as a parent is the measure. How do we really know if we’re succeeding?

5 pregnancy myths that just won't go away

When you're expecting, it often seems like everyone is keen to offer advice about what you should and shouldn't do in the interests of your health and wellbeing.

RPA hospital contacting mums after discovering vaccine storage fault

Sydney's Royal Prince Alfred Hospital (RPA) is trying to contact women who had babies at the facility after discovering a fault in a refrigerator containing vaccines.

'Nutella' not a baby name, French court says

A French court has blocked parents from naming their baby girl after the hazelnut spread Nutella, arguing it would make her the target of mockery.

Why I'm never calling myself 'just a mum' again

I’ve grown three human beings. I feed them, dress them, teach them, care for them and love them 24 hours a day. Yet for eight years, when I meet new people and they’ve asked me what I do, I tell them: “I’m just a mum”.

Rosie Batty named 2015 Australian of the Year

One year ago, Rosie Batty could not have imagined she'd be where she is. Tonight the grieving mum who put domestic violence on the national agenda was named Australian of the Year.

Five reasons to hug more

Hugging – some of us thrive on it, even depend on it – and then there are those who don't care for it really. So, are they missing out?

Help - my three-year-old has started throwing tantrums

My daughter never went through the "terrible twos" but began throwing wild tantrums shortly after her third birthday.

That's commitment

First peek at Sonia Kruger's daughter Maggie

"She smells so good, I could eat her," Kruger tells co-host David Campbell.

Mum assists in own caesarean surgery

A mum who partly delivered her own twins during a caesarean has encouraged other women to take control of their birthing experience.

How to handle common childhood regressions

Regression can be a natural and common part of development prompted by a variety of factors, but that doesn't make it less frustrating.

Disgruntled dad's pram ad goes viral

When buying a second hand pram, there are lots of things to take into consideration. 

Man discovers he's a dad after finding 55-year-old letter

Discovering you are about to father a baby is startling enough - never mind finding out you have a 61-year-old son.

15 thoughts mums have during a tantrum

Ranging from mild to feral and triggered by events both minor and major, tantrums certainly keep life interesting.

Natural pain relief in the early stages of labour

While managing labour pains on your own can be daunting, there are a number of natural pain relief options to help you cope until you are admitted to hospital.

Win an Octonauts prize pack

To celebrate the launch of Octonauts Live! Operation Reef Shield, a spectacular underwater adventure live on stage, we are giving away an amazing Octonauts prize pack to one lucky fan.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Forgotten Baby Syndrome claims the life of toddler

One baby dies every eight days in the back of a car in the US, victims of 'forgotten baby syndrome'.

For a brief time, I was touched by an angel

For a brief time, I was touched by an angel. You stole my heart, and changed me into the women I am today.

Chinese woman gives birth to quintuplets

After six years of trying for a baby, a couple’s dreams have come true many times over after the mum gave birth to quintuplets this week.

Chrissie Swan has reached her "sex quota"

Chrissie Swan says she and her partner have sex once a year due to her fear of falling pregnant.

Stars help save choking babies

It's an important lesson to learn, but one that busy new mums and dads might overlook until it's too late.

New Girl star Zooey Deschanel pregnant

Actress Zooey Deschanel is expecting her first child with her producer boyfriend Jacob Pechenik.

16 times 'dad reflexes' saved the day

Of course, in some cases they may be the ones who actually got their child into a precarious position in the first place, but we'll ignore that for now.

Couple's 'non-traditional' pregnancy announcement goes viral

Knowing you are not the father of your pregnant wife's baby would usually indicate a rocky relationship ahead for traditional parents.

The trials and tribulations of identical triplet newborns

Pip Donnelly is still playing spot the difference with her newborn identical triplets, Isabelle, Georgina and Frankie.

Win an Octonauts prize pack

To celebrate the launch of Octonauts Live! Operation Reef Shield, a spectacular underwater adventure live on stage, we are giving away an amazing Octonauts prize pack to one lucky fan.

Earthquake baby thriving five years on

Jenny Alexis is lucky to be alive after spending four days buried in the rubble of the 2010 Haitian earthquake, but now she's a thriving five year old.

Please don't say I'm lucky because I was adopted

On the one hand I was having a regular life with friends and sports and sleepovers and school. But I was also always wondering: Did my mother love me? What was wrong with me?

An open letter to non-parents who offer advice on child-rearing

Kitty, when you’re the parent of my child you’re welcome to wade in with an opinion – but until then, I’d prefer you to have a supportive ear and a glass of wine ready.

Couple arrested over baby gun video

A US couple faces charges after investigators say they found mobile phone videos showing the woman's 12-month-old daughter putting a handgun in her mouth.

NSW Health dumps 10-year limit on frozen embryos

A 10-year time limit on storing frozen embryos that were created with donor sperm has been dropped by the NSW government.

How my happy-go-lucky husband became a monster

Sharan Nicholson-Rogers watched her husband change from a happy-go-lucky police officer into an unpredictable man prone to violent and emotional outbursts.

Dads-to-be experience hormonal changes, too

Dads-to-be experience hormonal changes in line with their pregnant partners, a new study shows.

'They were just doing their job': mum of toddler killed in police chase gone wrong

"They were just doing their job. I feel so sorry for them. It is all just too sad."

Miscarriages to be formally recognised by NSW government

Women who miscarry will be able to obtain an optional "recognition of loss" certificate as a formal recognition of their often heartbreaking loss.

Cafe cubby house 'too noisy' for neighbours

Teenage parties, domestic disputes, or raucous late night pubs are the things that usually come to mind when you think neighbourhood noise complaints.

Dad films baby playing with snake

Most parents would not consider a snake an appropriate playmate for their baby, but a US dad who filmed his daughter playing with a python has defended himself against criticism.

Clever breastfeeding products

Check out this range of products designed to help make your breastfeeding journey more enjoyable, manageable and convenient.

 

Back to School Offer

Findababysitter.com.au

We've got you covered for this school year. Use www.findababysitter.com.au to meet local nannies now.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.