Hi,
I am 35 years old with 3 kids and I work part time in a secure job.
Over the past few years I have managed to save almost 20,000 from cutting back and having no debts..
I'm really wanting to buy a home for the first time, I want it more than anything for my kids and I will get there one day, but one downfall is that I don't have barely any credit history as I'm always saving in advance and buying things outright.
I've always been this way ever since I left home at 18, I purchased all my cars and belongings with cash straight up.
When I get into savings mode, nothing stops me I am so good at saving and putting money aside... the only thing I would have credit history for is for my 2k credit card which I have never paid single cent of interest on as I transfer funds straight back over from my account every time I use payWave 😂
Would I need to get myself a small loan or bigger credit card as a stepping stone to getting myself a mortgage??
What are my chances of getting a home loan as a single mum too??
I currently pay $430 per week in rent.
Tia.
6 Replies
Definitely seek out a mortgage broker for advice, however as long as you can show you can actively save and repay then you are usually considered!
My banks advice (with Bendigo) a neutral credit rating is better than a bad one!
Savings history, bills (phone, rent, utilities) all go towards "credit rating" banks like having credit cards used as credit rating as they get interest. But you shouldn't need to have any loans or credit cards to have a credit rating has been my advice from the bank.
Interested. Im in the same position but no deposit saved yet, so havent started to find out how it will go.
So silly when we pay this much rent weekly anyway!
The way a persons credit rating is calculated has changed the last few years. It's calculated on if you pay your bills on time now. So paying your electricity bill late counts as a mark against you for example.
You don't need to have had a debt to get a home loan. If you had debt they'd tell you to get rid of it, before they lend to you. They told my sister to cancel her credit card even though it was at 0 balance.
Credit rating now goes off not having any debt and history of paying bills on time. Google Barefoot Investor, borrow from the library if $30 is too much for you to purchse. Best $30 I've spent. He explains it really well and even the exact words to use when you ring looking for a mortgage. You sound like a very good risk!
We are trying to remortgage our house right now to do some renovations.
My husband is on $110,000 a year but we have 3 kids and I don't work, So that makes it hard to get any money.
The bank told us with 3 kids the put our living expensive are $3500 a month. 😩
And if u have a credit card even if u have no money spent on it. They will put that into ur monthly expensive with 14% interest.
After much discussion we were told we were only alllowed a mortgage of 350,000.
They pretty much told us I need to work to get any more money.
We showed we pay more then the actual repayments each month so we could afford more but they wouldn't allow it.