The bank increased our pre approved loan amount by $100k with almost no change in circumstances

[crystalsookraj]

About 7 months ago I went into the bank to organise a loan for our second home. We have outgrown our current one and are looking to upgrade. We were given pre approval for $300k and set off house hunting. The pre approval is good for 6 months.
We are in no rush and are looking for the right place in a time when there’s hardly anything on the market, so the 6 months lapsed. The lady from the bank called and asked if I wanted to go for another 6 months. I agreed, so she asked if anything has changed; We still have 3 kids, no other debt, same jobs albeit I had a 4.5% pay rise. Basically everything is the same as before.

An hour later I see her email saying we now have pre approval for $400k!

I ran the numbers and doubt we could afford the repayments on a $400k loan. Things would be very tight.

Edit - just wanted to say that I’m not seeking advice. We have no intentions of borrowing to the max. I just thought I’d share my recent experience.

 

[loveallandbeloved]

@crystalsookraj There isn’t enough information to determine what has happened.

unlikely it’s something dodgy.

Could be your pay rise, could be differences in rate (they may have used the incorrect assessment rate), could be 100 other things. It’s impossible for us to tell you.

Why not ask your bank?

 

[fengqiwu2011]

@loveallandbeloved

Why not ask your bank?

Are you sure it's not better to ask internet strangers who have little information about your circumstances or how the pre-approval was determined?

 

[loveallandbeloved]

@fengqiwu2011 That seems to be the approach on this sub

 

[onlybygrace101]

@loveallandbeloved And on AusProperty not being willing to talk to their conveyancer before posting!

 

[zumbafanforever]

@fengqiwu2011 OP didn't even ask a question

 

[crystalsookraj]

@fengqiwu2011 I wanted to share the story with other like minded individuals. I wasn’t even asking a question in my original post, just sharing.

 

[chanel116]

@crystalsookraj You are right. They are right. It’s worthy of a post.

 

[crystalsookraj]

Lol, why did this get downvoted

 

[redleghunter]

@crystalsookraj Where do you live?

 

[crystalsookraj]

@redleghunter Small town in SE QLD