Those who have been affected financially due to Covid-19 can have early access to superannuation. Those who elect to withdraw moneys out of their super will not be taxed and do not include it in their tax return.
Is this too good to be true? Could it damage your chances of getting a home loan? Find out below.
When looking for a mortgage broker in Brisbane, Dream Financing is your friendly local team, here to help you secure your new property!
Whether for an investment, first home, an upgrade or a refinance, we help Brisbane locals get into their dream properties every single day.
If you have struggled to find reliable and honest finance advice, rest assured our experienced team has been helping people purchase homes for over 20 years.
Early access to your superannuation
Those who are declared eligible can access:
- $10,000 of their super up to 30 June 2020
- Another $10,000 of their super from July 1 to September 30 2020
In order to apply you must be an Australian or New Zealand citizen or permanent resident. Individuals must satisfy one or more of the below for early access to superannuation:
- You’re unemployed
- You’re eligible to receive benefits – parenting payment, job seeker, youth allowance for job seekers or special benefits
- After Jan 1 2020: your hours were reduced more than 20%. If you’re a sole trader your business has reduced by more than 20% in turnover or you were made redundant
Could this damage your chances of getting a home loan?
In short, yes. Depending on the circumstances that is.
Lenders are all continuing to tighten up their policies since Covid-19 first began and are wary of lending to those who are in financial hardship.
If you withdraw money from your superannuation when you’re not in hardship you will more than likely be ineligible to apply for a home loan. We have had firsthand experience of one of the major banks declining a home loan application for first home buyers due to this reason. Just the fact that you declare you are on hardship when you aren’t is the main reason this could cause you problems.
Every bank has different lending policies and processes to follow however, ultimately it comes down to the individual assessor. Even if you are genuinely on hardship and withdraw from your superannuation this has to be justified to the lender at the time of the loan application (eg. after you’re out of hardship).
Our focus is always to understand our clients unique situation or circumstances. Experience has proven that the earlier we meet with the client and agree a strategy to achieve home ownership the better the outcome. While we know getting a great interest rate is important we have to examine all facets of a borrowers circumstances (eg. Some first home buyers may have to choose a lender with a higher interest rate to qualify for their first house).
We also understand that a timely finance approval is always important when it comes to home purchasing which is why we always advocate to obtain a pre-approval. Being secure in your options before making an offer is more important than ever and having someone to help you navigate what can be a very complex and daunting process will get you into your new home sooner.
3 ways Dream Financing can get you a better deal!
- Access to deals – We find the most suitable loans for our clients individual circumstances on the market with access to over 35+ lenders
- Negotiation – We can negotiate interest rates, loan term and the best structure for you with a variety of lenders
- Confidence – We give you the confidence that your financing will be in place in a timely manner and the certainty to make offers on the property you love.
If you are looking for a mortgage broker to assist you with purchasing your home, Dream Financing is here to help. We have the experience and attitude to bring your dreams to life.
Disclaimer: The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Dream Financing is the mortgage broker of choice for Brisbane North, including Eatons Hill, Albany Creek, Warner, Draper, Samford and surrounding areas. We’ll help you find the best loan products no matter what your personal situation is.
We offer expert advice on a huge range of services including home loans, investment property loans, cashflow finance for self-employed, commercial property loans, car loans for self-employed and equipment loans for self-employed.