Big one off expense before applying to home loan, what to do?

Gday everyone,

I have a conundrum. I plan to apply to a home loan to buy a property interstate (maybe Brisbane, Perth or Adelaide) later on this year. Between my wife and I we earn about 190K, we do not own any property, and we have around 200k already saved (plus other 200k in ETF) and in general we use to keep our living expenses reasonably with no extravagant squandering. The issue is that I need to have an expensive dental treatment worth between 15-20k soon, and although I have money dedicated to this, having a sudden 15k-20k one off expense in one month in my history probably would not be seen with good eyes by prospective lenders.


As I need to have this treatment soon, and I also would like to buy a house later on this year, is this going to affect me negatively? Is there anything I could do? Any suggestion and comment for this situation would be highly appreciated.

 

It should be fine as it's just a once off expense.

Most banks these days dont ask for statements so they probably won't even see it.

 

One off expenses are not living expenses. Odds are the bank wouldn't ask about it even if they did see it. If they do ask, tell them what it is. It's not a problem at all.

 

Are you putting it on credit card ?

 

Keep your dental receipts to prove the expense if queried.

 

Large one-off expenses are not an issue for most lenders, easily explainable and evidence to show it's not ongoing fixed/recurring expense. Easy peasy.

What LVR will you be applying for?
You might not even have to supply your bank statements for expense verification any way.
Suggest using a Mortgage Broker for you loan application.