Children restrict maximum mortgage size
Families with children face more hurdles to getting a loan or increasing the size of the mortgage because of new guidelines being adopted by lenders in response to the new national consumer credit rules.
Big mortgage insurer Genworth has issued advice to banks and building societies saying a couple with no children and an income of $60,000 can qualify for a maximum loan of $280,000.
With one child the maximum drops to $226,000 and with four kids the maximum is just $63,000. Taking family tax benefit into account, the family with four kids could qualify for a loan of $229,000.