Lenders Ratios and Children: How One Impacts the Other
The Australian Institute of Family Studies carries out several studies about the cost to raise children. In 2018, they found that it costs $340 to raise children per week on average. In total, it takes $159,120 to raise children until the age of 18. These figures are averages. In addition, a toddler costs less to raise than a newborn or teenager.
Lenders ratios and children go hand in hand. Financial institutions expect that homeowners will pick their child’s needs overpaying their mortgage in financial hardship situations. Picking between a child’s needs and a mortgage repayment puts parents in tough situations. They need to keep a roof over their head. But everyone needs to eat too.
Individuals who have children can qualify for a healthy mortgage. Since children have a set of financial needs, it’s a good idea to purchase a home before having children. Lower expenses mean that you have a higher borrowing capacity and power. Lenders know that most homeowners will expand their families. However, if you enter a mortgage with the least amount of expenses, you can obtain shelter for your future family with more ease.
Those who already have children can speak with loan specialists at Mortgage House. They go over your options and ways to manage your monthly financial obligations. You can also try our home loan calculator.
Lenders Ratios and Children Conclusion
Children impact a home loan applicant’s ability to borrow. Lenders ratios and children impact the potential mortgage amount. Mortgage House loan specialists factor in this information. They help borrowers understand their borrowing power and capacity. Contact our team today.