THE BUDGET

[newstart2380]

I listened to Amanda Vanstone and Grahame Richardson this morning and what I heard was very concerning.

They both agreed that what ever party wins the election in September the GST will most likely rise at some stage to at least 15% because the deficit at this stage ( and rising) is so huge and there is NO money in the coffers.

The mining boom has weakened somewhat and this government has grossly overspent, the OZ dollar is to strong against other currencies but GR stated any credible treasury department would have foreseen and taken appropriate measures long before now because the OZ dollar has been high for over 2 years.

The Swan budget will be interesting but I think it will be his "swan song"

[catsnknots]

To get a home loan all you need to show is a savings history and the ability to repay the loan.

As a single female parent I can tell you that a lot of women get refused for home loans because they are the sole carer of a child.. 

Not all of us but a lot of us are in that situation. 

It is not a negative credit report that was my problem... that was all fine.. 

It was lack of proof that I can repay a loan... 

I can only relay what a bank manager told me... it was my personal experience.. I am not telling fibs.. it was what I was told. 

[twinkles**stars]

also single as you know.....and bank manager was only interested in my current financial situation not that of my past.

[freakiness]

also single as you know.....and bank manager was only interested in my current financial situation not that of my past.

You already owned your home though.

It's a bit different when applying for the first time as a single.

[newstart2380]

cat......I walked away from the bank I had been with for over 30 years where I had both personal And business a/c to another bank. All they required was a clear credit history showing nothing. They didn't ask  for proof of previous loans paid out. I just wanted to point that out knowing bank employees get bonus points for each new a/c opened and you may be paying fees .

I also walked away from the bank we had been with what seems forever and took the business account and personal account to a building society. It has been fantastic, no fees, no hidden charges and they know my name when I go there, so friendly.

Should have done this years ago.

[the_hawk*]

As a single female parent I can tell you that a lot of women get refused for home loans because they are the sole carer of a child.. 

Not all of us but a lot of us are in that situation. 

It is not a negative credit report that was my problem... that was all fine.. 

It was lack of proof that I can repay a loan... 

I can only relay what a bank manager told me... it was my personal experience.. I am not telling fibs.. it was what I was told. 

Cat my daughter was in the exact same position, I got her to do up what was basically the same as a business plan with all her income and expenses, just like a profit and loss statement.

She had a good deposit saved and the repayments were within her budget, but were over the percentage of her income the bank would normally accept.

Because her plan showed she could afford more because she had no debt at all or even a credit card she was given a verbal approval on the spot and head office rubber stamped it by days end and that was with a major bank.

Your savings history and your rent shows what you can really afford to repay, and a 20% deposit goes a long way   

If you have a credit card with a $2000 limit even if its paid off the bank will still consider that you own $2000 on it even when you don't and that will reduce the amount you can afford to repay as far as the bank in concerned.

What you believe and accept is up to you, I am only trying to steer you in the right direction, Its good to see someone with a goal, but you need also need a plan or a good map on how to achieve it.   

[twinkles**stars]

freakie....if I owned my home would I need a loan for a smaller one? my share was 50%. I had a deposit....yes a very sizable one but i left the first bank after they refused my application having on hand my past banking history.

[twinkles**stars]

the smaller banks tend to be approachable imo

[twinkles**stars]

and  my present bank is not in my local area but a good 45 minute drive away......do shop around cat

[newstart2380]

freakie....if I owned my home would I need a loan for a smaller one? my share was 50%. I had a deposit....yes a very sizable one but i left the first bank after they refused my application having on hand my past banking history.

I know you were not asking me this question but not quite sure what you are saying.

if you own 50% of your home are you selling it and buying something smaller ?

It would depend on what your net result is after the sale as to what you would need to borrow. If you have the deposit for the smaller house a building society may look more favourably at your application. A broker can do all the hard yards for you and get you the best deal as well as going to building societies.

[bella_again]

We were rejected by a number of banks over the years and we learned to go through a good broker who knew exactly what to ask for and how to meet the criteria.  Last house we purchased we purchased a month after the last crash on the stock market and only one bank would loan us the money because they had all tightened their lending criteria. Not all banks will loan to those on income support and the criteria is very tight if they do.