Browse Forums Home Finance 1 Apr 10, 2009 5:46 pm We got pre-approval from St George and bought an apartment at auction shortly thereafter for $500K ($200K below the pre-approval amount). We provided our broker with the updated payslips and bank statements and I got a call the other day asking about regular payments which are being made to my husband's Source credit card. I did let her know about this when we went through pre-approval but thought the limit was only $500 - it is actually $10,000 limit! It was an innocent mistake and the card is always paid off at the end of the month. We were going to cancel the card anyway and just use a debit card. Do you think this will be a problem with the actual loan? Should we cancel the card? I think I am just stressing because there has been not much to stress about! Re: Do you think I have anything to worry about? 2Apr 10, 2009 6:02 pm 1Crackers1 .. but thought the limit was only $500 - it is actually $10,000 limit! It was an innocent mistake and the card is always paid off at the end of the month. We were going to cancel the card anyway and just use a debit card. Do you think this will be a problem with the actual loan? Should we cancel the card? I think I am just stressing because there has been not much to stress about! Expect some more drilling questions from the bank. Voluntarily reducing the limit back to $500 will show goodwill. Re: Do you think I have anything to worry about? 3Apr 10, 2009 6:19 pm Thanks Thlo, it's a bit scary!!! We might actually cancel the card and get it over and done with. We don't need it anyway. Re: Do you think I have anything to worry about? 4Apr 10, 2009 6:36 pm if you dont need it I would get rid of it. we got rid of ours before getting our first home loan (about $200,000 5 years ago) because they consider the entire available amount as an amount you are liable for, even if you havent used it all. ie. if you have 3 credit cards totally $30,000 and have only ever used $1000 on each and always paid the entire balance off each month (like good little budgeters!) the bank will still think of it as a full $30,000 you may have to pay off on top of your home loan. and in theory, if you wanted to - you could spend it all and they would be right. you can always get a credit card back again after you have secured and begun the loan. the credit card companies are the opposite to banks, they couldn't care less how much you might owe altogether! Building Emperor Q2 with Henley in Featherbrook stage 13, Point Cook. Slab laid - Building has begun! Re: Do you think I have anything to worry about? 5Apr 11, 2009 2:32 pm 1Crackers1 ... bought an apartment at auction shortly thereafter for $500K ($200K below the pre-approval amount). I should add; I didn't comment on it from a borrowing capacity point of view as it sounds like you have plenty of capacity based on your pre approved limit. Normally that would be the first issue of concern. Re: Do you think I have anything to worry about? 6Apr 11, 2009 6:59 pm thlo 1Crackers1 ... bought an apartment at auction shortly thereafter for $500K ($200K below the pre-approval amount). I should add; I didn't comment on it from a borrowing capacity point of view as it sounds like you have plenty of capacity based on your pre approved limit. Normally that would be the first issue of concern. Thanks Thlo, you are very helpful here. I believe we are very much within capacity - while we got pre-approval for $700K we could have go just over $1 million. I'd hope this would stand in our favour! Re: Do you think I have anything to worry about? 7Apr 13, 2009 3:45 pm I'm reading this thread with interest as i am applying for a home loan and have a credit card with a $19.5k limit. Is the primary concern here that the bank will calculate how much I can borrow and then subtract $19.5k from that amount? And what are the secondary concerns then? That having such a limit in the first place is suspicious in terms of credit worthiness? Now I am getting worried too Metricon Riva 33 - http://herlihy-riva.blogspot.com Site start 15/03/2010 - Handover 23/12/2010 9 months and 8 days (284 calendar days) from site start to handover Re: Do you think I have anything to worry about? 8Apr 13, 2009 5:25 pm St George has a policy that if they believe you have intentionally deceived them on the application then they will decline your loan regardless. I doubt very much that they would view what has happened as you intentionally deceiving them, especially if you are willing to close the card now. So in all liklihood you will be fine. I agree with thlo that you'll get 20 new questions, thats just how St George credit officers are trained to think! I had an old shower unit that broke on me and when I took it off, there were only 2 water pipes, instead of the normal 2 water pipes and a shower head pipe. S o I… 0 36938 No. It's not original. Circa early to mid 90s would be my guess and maybe even as late as early 2000s 1 6632 Thanks mate. Yeah good points! Leaning towards Option 3 to get a bit extra space in the cabinets but not going too crazy high (and expensive). Would require a mini… 13 39703 |