Home Loan approval with too many credit enquiries on file

Hi

I am 31 years old my partner is 32 years old.

I am in full time employment, have been with my current company just over 12 months now. But my last 3 jobs I have always held the same position Payroll Manager and have never had a period off in between jobs.

My partner is employed by an Agency and has worked full time hours with the same company for over two years now. He is off for the next 2 months to look after our baby which I just had in Feb (I had 9 weeks off).

We are currently paying off a mortgage that is in my partners name. The home was $380k, he paid $160k onto it directly.

We wish to purchase a larger home for around $450k in the same area.

So I am not sure how this all works, as he paid 160k onto the current home and only borrowed 220k for the home loan how would you "buy" a new house without selling the current one first?

As we would hopefully get about 400k for the current home as we have installed a new kitchen and put in a spa pool. And that is the average for a home like ours in the area.

Any way sorry about all that, don't know if you needed to know it.

I earn 85k gross and he earnt about 43k gross last year.

-I have too many credit queries on my file, I have 48 queries in the last 5 years. I kept applying not realising this was the reason I kept getting declined. I stopped making queries once I tried to get a new car loan in Sept last year. I paid the one I had at the time out 2 years early, and couldn't understand why I kept getting denied. We even tried to refinance and just never heard back.
In the past 7 months there should only be one, for my mobile phone contract as the last one ran out and I got another one.
-My partner should only have at max 3 in the last 3 years on his credit file.

I have no debts whatsover, and my partner only has the current mortgage in his name which we both pay for really.

So my questions are:

1) How much would we be able to borrow if we were allowed?
2) How does it work when you have a current home you would sell to help pay for part the new home?
3) How far back do banks look on your credit file for the purpose of a home loan?

Sorry so long, just try to be as thorough with our circumstances.

Thanks

[Hoa Hong]

Hi dbale,

There is two paths you can take.

1) Organise a pre-approval based on the sale of your current home, and organise a simultaneous settlement where the sale of your home and the purchase of your new home settles on the same.
2) Organise a approval based on holding both properties and renting one out. If you were to hold both properties you would need to have rental to keep yourself a float.

With the matter at hand of high credit enquiries this will be a issue with most lenders who will decline on this basis. We have a few lenders who will not take this into account and look at the last 12 months enquiry only.

In response to your questions:

1) The larger the deposit the higher chance of being approved, with a 20% deposit you will have a higher level of approval, on your current incomes and debts you can obtain a loan for $500K
2) The sale of your current home will be needed to provide a larger deposit or if the funds of $160K are sitting in a redraw then you can use these funds.
3) Usually 12 months but with your 50+ enquiries they will look at the credit report as whole.

Thank you.

What about a bridging loan? do we need to save a deposit since we already have a home?

[Hoa Hong]

Bridging loans is a option but can be quite difficult to put together if there is not enough income to support both debts at the same time.

With the higher enquiries we would also have to keep this under 80% which can mean not enough funds to complete.