Are you expecting? Congratulations! If you’re in the market for a mortgage, here’s how to put your best foot forward.
Recent media reports suggest that banks may block mortgage applications made by couples who are expecting a baby. However, experts say you need to read between the lines to see if these headlines apply to your personal circumstances.
While not everyone can get a loan, pregnancy is only one element lending institutions will assess when making a decision. It comes down to the planning you’ve done and your ability to communicate that to the lending institution.
The banks will make the decision on whether you’re eligible based on how much you’ve saved, how much maternity (or paternity) leave you intend to take, your financial history and your particular employment arrangement.
Some banks are more willing to consider an expecting couple than others – and we have all that information at our fingertips.
It can help if your employer can write a letter – on company letterhead - stating the arrangements that you have made regarding how long you are planning on taking off for maternity leave, and if you will be coming back in a part time or full time position.
Also, if you’ve got the savings in the bank that will cover the shortfall for the mortgage while you’re taking time away from your employment, you’ve got a far greater chance of securing a mortgage if you approach a bank while you’re expecting.
Your savings history and proving to the lending institution that you live within your means will help, she says. If you’ve been living the high life for the past six years, the banks are less likely to take a shine to your application.
Contact either Owun, Suzanne or Costa on 02 9517 1818 or firstname.lastname@example.org to discuss your options. Or, if you feel like dropping in at our office, we are located at Suite 106, Flourmill Studios, 3 Gladstone Street, Newtown 2042. Be sure to share our blog on Facebook and Twitter and let others join the conversation!