Finance expert reveals your fur-baby could stop you from getting a home loan or refinancing a mortgage?
Could your pampered pooch be holding you back from securing a home loan or refinancing a mortgage? The answer, surprisingly, is yes.
One financial expert is urging homebuyers to think twice before rushing out to spend thousands of dollars on a furry friend — particularly designer breeds such as cavoodles, groodles and spoodles, or other high-price dogs such as border collies and golden retrievers.
Aside from the initial cost of up to $6000 for such breeds, Finch Financial founder and chief executive Julian Finch warned some lenders took into account pet expenses when calculating a prospective first-time home loan applicant’s ability to afford a mortgage. It could also affect those trying to refinance.
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By continuing you agree to our Terms and Privacy Policy.“Many people who own cavoodles are millennials and it is this age group that is currently being squeezed by the cost of living crisis,” Mr Finch said.
“This group has children, family expenses, a mortgage, health and child care costs and schooling expenses.
“A number of financial institutions ask questions about your pet situation when processing a loan application.
“The high cost of owning a pet can definitely have a significant impact on household finances and your ability to meet loan repayments. Some pet breeds are known to be more expensive to maintain than others. Cavoodles fit into this category.”
While day-to-day costs can seem minimal compared to the rest of the household budget, Mr Finch said banks factor in the reality that regular veterinary care, vaccinations, insurance, preventive medications and dental care add up over time, especially for high-end breeds.
“Many banks want to know about these living expenses,” he said.
“The ongoing cost of pet food, treats, toys, bedding, grooming supplies and other essentials can contribute significantly to household expenses. Larger pets or pets with dietary restrictions may require more expensive food options, further increasing the cost.
“Some pet owners pay up to $1000 a month on maintenance costs.
“To mitigate the financial impact of pet ownership, it’s essential for pet owners to budget carefully, plan for anticipated expenses and consider the long-term costs associated with pet care.”
