So what happens if i just got finance approval from the bank, but have not yet purchased the investment property….and then find out that I'm pregnant! since in 9 months time we will drop down to a dingle income…do we have to tell the bank?fredo_4305Participant@fredo_4305Join Date: 2009Post Count: 336
You are probably suppose to but what they don’t know……. You could also win the lotto between now and then or decide you want to go back to work at six weeks
Under NCCP you are required to advise the lender of any material financial change that is likkely to occur within the next 2 Years so this woulld certainly be the case here.
If however you will be on full / half pay then no reason why the deal still cant be approved as long as serviceability can be met.
Yours in Finance.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Firstly, congrats – that's fantastic news!
As Richard said above, technically you have to disclose this info to the lender.
If you don't, just make sure that you've done your own sums to insure that you'll still be able to afford it once the bub comes along. You really don't want to be worrying about cash during these times.
All the best
Jamiefredo_4305Participant@fredo_4305Join Date: 2009Post Count: 336
So under the NCCP if you told the banks that you were pregnant that would take that into account but if you told them in 9 months you are getting a promotion and a 50K pay rise they would laugh in your face.
fredo getting a 50K increase in your income is unlikely to be of detriment to your financial position going forward.
Yours in FinancemattstaParticipant@mattstaJoin Date: 2011Post Count: 604
Congrats on the baby!
Make sure that you do tell the bank, especially if you feel you won't be able to make repayments if the bubs will affect your income
Oh thanks for the cognrats….its second time round…so i know what i’ve got myself in for. I guess it may not be that big a deal to the banks considering i get 3 months paid maternity leave from my company and 10 weeks paid from the government….Is the bank really going to ask when i’m going to come back to work after the baby ie 6 weeks, 6 months or 12 months after?Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Yes, they will want you to provide some sort of plan in regards to how you’ll service the debt once the baby arrives. If LMI is involved and your income is a significant contribution to your borrowing capacity than it can be difficult to get approved.
Ok i’ll put a plan together and see what the bank says. Speaking of LMI Jamie, are you able to apply for a discount on the LMI if you get your property revalued and it shows it has gone up in the one year?
No hate to say NO.
LMI is charged at the time and even if you refinance 15 months later you wont get a partial refund these days.
Certainly if the property has increased in value the best you can hope to get is that the top up loan is covered under the existing LMI premium.
Yours in Finance