22 Mar 2022

What Qualifies An Individual as a Dependent?

Dependents and Mortgages

In Australia, authorities consider an individual under the age of 18 dependent on their parents. For mortgage purposes, the same remains true. Moreover, lenders consider anyone who depends on the mortgage applicant financially as a dependent too. Dependents play a role in a homebuyer’s borrowing capacity. They lower the mortgage applicant’s borrowing capacity in increments. It remains one reason why the Australian government invests resources into helping young adults become homeowners sooner rather than later.

When a homebuyer applies for a mortgage, their spouse counts as a dependent if they do not list them as a buyer on the application. Partners fall into the same category.

Lenders apply several ratios when evaluating the homebuyer’s finances. The goal is to put them in positions to succeed. Any mortgage issued ensures that the home buyer can repay the debt in full and on time. Mortgage House takes things a step further. Since 1986, we have brought innovation to the lending market. Our loan specialists use proprietary tools to find the most appropriate loan products and terms for most applicants. 

Helping homebuyers become homeowners helps them create wealth and start to accrue home equity. Ideally, their financial situation will improve as time passes too. 

Nonetheless, our loan specialists practice good lending. Plus, Mortgage House offers several online tools to help homebuyers prepare such as our mortgage calculator.

Dependents and Mortgages Conclusion

The number of dependents a mortgage applicant has, the more it impacts their borrowing capacity. Nonetheless, our loan specialists at Mortgage House will explore your loan options based on several factors. Contact our team today.

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