Tuesday, September 01, 2020
Mortgage Loan

Purchase property after divorce – Mortgage credit

Monique works in education and wants to restart her life after her divorce. With a new mortgage loan, she can purchase a home. Monique sells existing home and repays its debts.

Monique continued to live in the house after the divorce. She decides to sell it and to repay all her debts, including a mortgage loan. The surplus of the funds is invested in a new purchase.

Financial plan of the purchase

Financial plan of the purchase

Monique is buying a new home as a single mother of two children for $ 205,000. After deducting all her debts, she can still invest more than $ 120,000 as equity.

Monique is looking for a new home loan of $ 100,000 through her credit broker in mortgage credit.

After a thorough analysis of her application for a home loan, Monique receives an approval and can purchase her home. From now on, she will pay $ 550 per month with the new mortgage loan.

Working in education can cause problems

Working in education can cause problems

Monique works in education. Here it is dependent on annual employment contracts of a definite duration. This almost affected her by obtaining a housing loan. Fortunately, Monique can prove that she had been working in that school group for a number of years, so there is still a stable income. Because every mortgage loan must of course be able to be repaid.

How has Monique been able to demonstrate her seniority in education?

Working in education has its own characteristics. If you are not permanently appointed, you will often only receive annual contracts. A fixed-term contract. For that specific school year. Because of this, many bankers drop out because there is no stability in their eyes.

This was also our first reaction when we came up with this. However, our file managers have continued to look for a solution together with the credit broker. We requested the following documents from Monique:

  • Payslips
  • Tax bill
  • Employer’s certificate

This showed that a stability of income so that the repayment of the mortgage loan will not be compromised.

Being able to purchase a home separately – and not from every bank

Being able to purchase a home separately - and not from every bank

Monique is 52 years old and a single mother of two children. She works and receives child allowance and alimony allowance.

For many banks, Monique is a bird for the cat and she will no longer receive a new home loan. Many bankers can drop out for these reasons:

  • Monique is already 52 years old and therefore too old for many banks to get a home loan.
  • Monique requires a 20-year term to keep her monthly budget under control.
  • Monique works with a fixed-term employment contract.

At Good Finance we look at things differently.

  • Monique can get a new mortgage loan as long as it is fully repaid before she turns 75.
  • As a result, the customer is free to choose the term of his home loan.
  • Monique has a professional income, supplemented with additional income such as child benefits and alimony allowance.
  • Monique can present a stable income.
  • Monique has enough left over to live with her two children.
  • Monique makes a serious effort on own resources.
  • Monique pays less per month for her mortgage loan than she would have to rent an apartment or small house somewhere.

Monique is therefore a fully-fledged borrower for Good Finance and can now restart her life after divorce and buy a new home.

Do you also work in education? Or are you divorced and do you want to start a new life? Ask an independent credit broker for your home loan. Complete this form and we will get you in touch.

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