Hi, I had two kids while I got pre approval home loan for 870k. The application just kept renewing. Then third baby came . I forgot to update. It kept renewing . Now I am interested to buy house seriously. This time Bank asked me how many kids do I have. I said 3. Now they reduced the home loan to 700k. For one child 170k? Should I try with different bank ? Will it effect my credit rating ?
What time frame are we talking here? Last time I checked, kids don't come quickly. I think it's quite reasonable that the lending landscape has changed in the time it's taken you to reproduce lol.
pull your credit file if the lend is above 80 lvr lots of enquiries may not end up working out well. ta rolf
Something doesn't sound right. 1 child with the same others income & expenses doesn't impact the calc that much. Over time there's been tax cuts, assessment rate drops, etc --> these changes should outweigh the impact of one child to your calcs. If there's been an INCOME drop associated with the child (e.g. someone taking time off, not working ,etc) - then that would explain a big drop in capacity.
unless they are triplets the 3 kids were probably being born from about 2017 - lots of changes have happened since then
Pre-approvals last 3 months, usually with the option to extend for another 3 months. After that, it's a new application. Either the pre-approvals you've been getting are just the bankers opinion (not really a pre-approval), or your credit report has a lot of enquiries on it. In the last 3 years there's been a lot of changes to lending policy, very little of it working in favour of your borrowing power. Each dependant reduces borrowing power further as well. If it's only dropped by $170k, then the household income has probably increased along the way.
