My husband and I are getting serious about purchasing a property.
We have 3 children ranging from a newborn to an 8yr old. We have been renting with a perfect rental history for 10years now. We currently have 25K deposit saved but want to continue saving. We recieve centrelink and my husband brings in between 55K - 60K per year for his job. We have no debt and no loans.. BUT we because of financial mistakes a couple of years ago, we both bad credit scores and a total of 2x paid defaults on our credit report that total $4,000 ( paid off ) - but they arent due to come off our credit file until the end of 2022..
Has anyone been in a similar position and still obtained an homeloan? We will be seeing a mortage broker in the next month or so to see where we are at, but I don't have high hopes because of the number of dependants and also our current credit scores.
7 Replies
We had a really bad credit rating. We went to see the broker who found us a lender and we had to stay with them for 2 years until defaults etc came off our file. We had to pay higher interest rates BUT after 2 years, we refinanced with another lender, with a very small interest rate (just over 2%) and have been with them for 2.5 years.
We have matured so much since those mistakes. My husband is incredible with money now. We also follow Barefoot Investor 😄
The bad credit COULD be okay because you paid them off. But your hubby having such a low income and 3 kids will definitely put a spanner in the works.
I never realized this was considered such a low income? I thought it was quite average.
With 3 kids on that income your borrowing power would be low, probably less than $250k. Unless you live very rural you won’t get anything for that price.
Sorry different IM here... It's not just the salary that they look at -having 3 dependants and a partner (unless you are working full time) is what drives it down. On that wage, prob $250K would be the limit of your borrowing power.
I keep an eye on my score through credit savvy. I check it monthly & it lets me know when there are any changes.
I noticed a jump when I had a default removed, and another one when I paid out a loan, even though the loan wasn’t listed.
You can also apply to have a default removed once it has been finalised.
Get to know your credit file. Order your free copy from Veda/equifax & figure out where you can improve.
I had a default & was able to get a home loan as a single parent of 4. So it’s definitely worth discussing with a broker.
We have a perfect credit rating and own our home out right have 3 dependents (8,13 and 14) I'm a stay at home mum and my partner earns about 70k a year. We tried to get 100k to do extension's on our home most banks said no but 1 is letting us have 94k after putting us through hell. With the way things are atm it is getting harder to get a bank to lend money out to anyone.