22 Mar 2022

What Qualifies an Individual as a Dependent in Australia?

Dependent in Australia and Mortgages

The most common dependent in Australia remains the individual who is under the age of 18. They cannot enter into contracts and their parents remain responsible for their well-being including financially. When you apply for a mortgage, the lender requires you to list the number of children you have.

In addition, lenders require homebuyers to list other dependents. For example, a spouse or partner counts as dependents if they do not work and earn an income. Therefore, the homebuyer must list them accordingly on the application. 

Some households adopt and foster children. Those who are under the age of 18 count as dependents too. 

Applying for a mortgage remains a lengthy process where the applicant must provide a lot of information including dependents. Dependents count as individuals who have no financial means of their own so they depend on yours. In this situation, dependents lower the borrowing capacity of the homebuyer. They also lower the homebuyer’s net disposable income. 

Once an individual starts a family, obtaining loans becomes more challenging. That’s why the Australian government helps first-time homebuyers become homeowners at a younger age. Mortgage House is among the lenders that fund home loans for families.

To help our clients, we also provide several resources online including our car loan calculator for free. 

Dependent in Australia and Mortgages Conclusion

To obtain a mortgage, defining a dependent in Australia becomes an important task. Lenders must have a clear picture of the applicant’s financial responsibilities. Mortgage House works with an array of clients. Contact our loan specialists today.

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