[Jetay]

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 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?

[HollyOllyOxenfre...]

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

[justcait2]

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

[Madnesscraves]

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.

[niggles]

I'm sorry you are finding it so difficult. 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.

[Soprano-Cat]

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.

[kriattica]

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.

This post has been edited by kriattica: 11/01/2013, 10:23 AM

[Jetay]

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

[WinterDancesHere]

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.

This post has been edited by WinterDancesHere: 11/01/2013, 10:32 AM

[niggles]

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