Declaring dependents when applying for a loan?

[TinyStar]

Ok just went to the bank as I want to buy a house.

Now I am 30 weeks pregnant, I thought it looked fairly obvious but the lending manager didn't notice until I pointed it out to her. I also have one DD who Ms lending manager would not know about unless I told her.

So my question is, Do you legally have to declare all your dependents when applying for a loan? Considering that each kid chops $18K out of your borrowing power if you have a few it can be the difference between getting the place you want or having to "make do".

Do banks do searches to find out if you have any kids stashed away?

I think it's a bit unfair, DD costs us less than what we used to spend on going out. The only "expense" we have really incurred is loss of my full time income.

[jessgray]

wow $18k i didnt know that.
i would be intrested to know if anyone can shed some light on this too as we are thinkign of one day getting our own house :)

[jembelina]

We applied for a personal loan when I was pregnant with ds and didn't have to put down taht we had any dependants as technically we didn't at that stage! Don't know if it would be the same for a home loan though?? When you sign, aren't you partly signing to say everything is true and correct?? I would imagine you would have to be honest with that one otherwise I guess you could be in some hot water later on????
Hopefully someone who actually knows what they are talking about will jump in soon!

[Seekrit]

We just applied for a consolidation loan. I had no intent on declaring Nugget.... until I saw the box on the form "Are you going on leave."
DAMNIT.

[TinyStar]

Last time we did anything loan related I was very pregnant with DD, and there was no issue. (I even rocked up to get a credit card 39 weeks preg under my name declaring my full time income which I was no longer recieving. Got it too)

I guess you would mainly get in hot water if you couldn't service the loan. My main issue with the bank is that our repayments we make now are MORE than what we would have to meet with the new loan I want to get. We meet them fine, no probs. So why make such a big deal out of our changed situation?

gggrrrr I'm getting in a mortgage broker...she's 37 weeks preg. She'll understand!

[sharvs]

From my understanding, you have a duty of disclosure to be honest in answering all questions. I dont know what would happen if you didnt declare them & they found out after the loan had been funded, they couldnt re-posess or anything.

The financial institution also has to make sure they have your financial interests at heart. They cannot give you a loan on the basis that you will not be able to make repayments. I know it sux, but they have those guidelines for a reason. It is the same with cars etc. They have a table they use to estimate your disposable income and need to take everything into consideration.

[Rachael]

I am in the finance industry.

Basically if you do not declare dependants but you have them then you have trouble servicing your loan you can end up in the ****.

If your current loan is say $2k per month and the refinance amount is $1800 per month the lending institution should take into account that you are currently servicing a loan that is more expensive and it should be ok.


goodluck :):thumbsup:

[diamonds22]

We just went through this process recently...and I was around 15weeks preggy at the time...I didnt declare as she hasnt arrived yet..until she arrives safely I'm not prepared to declare dependants as technically I do not have any until I have her birth certificate and all goes well.

I would have declared if I had already had children..but as this is my first and shes not here yet... I don't see how I could get in trouble...like I said..shes a dependant when I know she has arrived safe and sound :fingerscrossed:

Is this your first or do you have other kiddies as well?

[2littleprincesses]

Sharvs, last year I took my car to a car yard to get an idea of its value and they tried to sell me a car - i had no intention of buying one. i had to sit with the finance person and give rough estimates of dh's pay, mortgage repays etc . they worked out i had $1200 left to spend pm. i estimate $50. They didn't take into consideration anything like water rates, bills, h&c insurance etc

No wonder people get sucked in

[sharvs]

Its because they have set values for things, sort of like an average. For arguments sake, they might estimate the average couple with 2 kids spend $200 a week on groceries, but everyone is different - you might spend $120 or you might spend $350. They want to make the sale, as long as you can afford it on paper that is all that matters to them - but we all know what works on paper and what really works are two totally different things.

[FourAngelKisses]

We got our first home loan when DS2 was 5mths old, they didn't even ask us how many kids we had. But when I was 6wks pregnant (and REALLY showing) we tried getting a home loan through a mortgage broker and they did ask. So I think it depends on where you go for your loan.

[reAllytee]

Be very careful about this as it is a legal document !
As Rachel said you could end up in a lot of trouble ( my DP is in this industry also ).
If anything does go wrong you will have no leg to stand on if you need help, cant pay the loan etc due to the fact you lied.
Fair enough that its less to pay than your current mortgage but situations do change unfortunately & this is where people become a little cocky thinking all will be fine.
We found this ourselves recently as i said DP is in this industry but the last thing we expected was for him to become injured & now we are struggling.

Good luck though hopefully you can work it out somehow.

[3boys1girl]

we where told that until the baby is registered with births deaths and marriages or on medicare it doesnt exsit. So until then u can get away with it... dont bother telling them. Good luck:fingerscrossed: