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I am a stay at home mum. I get a small amount from the government which in Australia most people get whether they are working or not. My husband works full time.
Anyway we recently refinanced our home loan so that we could do some much need renovations. Using on-line calculators we worked out that we could afford to borrow $225,000 and pay it of in less than 30 years when I return to the workforce in a year or so.
The highest we could get was no where near this amount. It was $156,000. Even though we had bank statements showing we had no credit card debt and our cheque account had not had a balance of less than $2000 for the past 12 months. With no choice we took the lower amount. Hopefully we will be able to get the work done. On the plus side we will be able to pay it off very quickly.
When I questioned the amount being so low I was told that "If you were working you could have borrowed more". And when I told the broker that it shouldn't matter how much you earn your borrowing capacity should be based on how much you spend his reply was " I am really sorry but I don't make up the rules".
Its like being frugal to save money so I can stay at home with the kids and provide a stable home has backfired. Has being frugal backfired like this for you?
Anyway we recently refinanced our home loan so that we could do some much need renovations. Using on-line calculators we worked out that we could afford to borrow $225,000 and pay it of in less than 30 years when I return to the workforce in a year or so.
The highest we could get was no where near this amount. It was $156,000. Even though we had bank statements showing we had no credit card debt and our cheque account had not had a balance of less than $2000 for the past 12 months. With no choice we took the lower amount. Hopefully we will be able to get the work done. On the plus side we will be able to pay it off very quickly.
When I questioned the amount being so low I was told that "If you were working you could have borrowed more". And when I told the broker that it shouldn't matter how much you earn your borrowing capacity should be based on how much you spend his reply was " I am really sorry but I don't make up the rules".
Its like being frugal to save money so I can stay at home with the kids and provide a stable home has backfired. Has being frugal backfired like this for you?
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