Browse Forums Home Finance 1 Jan 09, 2016 2:12 pm My husband and I would like to build our own home, we both have good, stable jobs, a 5% deposit, a good savings history, and no debt/credit cards. Putting all this into the online borrowing calculators, the banks will allow us ample amount to build a home .....UNTIL we add the dependents in! We have 4 children, and on average it drops our borrowing power by around $200 000, leaving us with dismal borrowing power and not enough to build anything here, despite being able to prove on paper that we could service a home loan. I am just after advice from anyone that has been in a similar situation and what they did to get into their own home? I haven't been to a broker yet, it's on my to do list, but I just wanted an idea of what my options would be? Would a guarantor make a difference? Perhaps buy the land first, sit on it a bit and pay the loan down? Disown some children? (jokes) Are there any banks that don't penalise you so heavily for dependents? Re: Increasing borrowing power with lots of dependents? 2Jan 09, 2016 2:48 pm Dreamer49 My husband and I would like to build our own home, we both have good, stable jobs, a 5% deposit, a good savings history, and no debt/credit cards. Putting all this into the online borrowing calculators, the banks will allow us ample amount to build a home .....UNTIL we add the dependents in! We have 4 children, and on average it drops our borrowing power by around $200 000, leaving us with dismal borrowing power and not enough to build anything here, despite being able to prove on paper that we could service a home loan. I am just after advice from anyone that has been in a similar situation and what they did to get into their own home? I haven't been to a broker yet, it's on my to do list, but I just wanted an idea of what my options would be? Would a guarantor make a difference? Perhaps buy the land first, sit on it a bit and pay the loan down? Disown some children? (jokes) Are there any banks that don't penalise you so heavily for dependents? Go and see a broker before you start panicking. Re: Increasing borrowing power with lots of dependents? 3Jan 09, 2016 2:57 pm The key is affordability, now, and should there be a large increase in interest rates - so while you may be able to afford the repayments now the banks are under super super pressure right now to ensure you can continue to afford the loan down the track. How old are the kids? Do you receive family tax benefits? There are so many factors and the banks differ widely - your best bet is a broker ( I know I'm biased but it's one of the best bits of my job) who can test the rules with all the lenders and see what can be done. The great points you've mentioned - stable jobs, no other debts etc, all help. Best of luck! Where are you building? Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Increasing borrowing power with lots of dependents? 4Jan 09, 2016 4:21 pm My kids are aged 13, 11, 5 and 3, does age make a difference when trying to get a home loan? We do receive family tax benefit, and are living/wanting to build on the Sunshine Coast. I'm just not sure how to 'improve' our situation to make it more attractive to lenders, short of saving the 200k shortfall decrease in borrowing power ourselves, which just won't happen unfortunately! Re: Increasing borrowing power with lots of dependents? 5Jan 09, 2016 4:39 pm It just comes back to how each lender treats our situation. Grab a good reference to a good broker & see what they can come up with. I'll see if I can think of a good one in that area. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Increasing borrowing power with lots of dependents? 6Jan 12, 2016 12:30 am As Bec says, it all depends on the how the lender will treat the situation. Some allow more in terms of living expenses for dependents than others, however the good news is that they should be able to take the family tax benefits A (and B if applicable) into account for income purposes. A decent broker should be able to lead you down the right path. Cheers Tom My land is 260m2 (10m x 26m) located in claymore NSW. Under campbelltown council. I know in general the following setbacks would apply ground floor side setback =… 0 6989 Would also like an opinion from anyone that has used xcem over hebel for floors. Thanks 1 14311 2 15519 |