Hi,
Just want to know, has anyone included Offset Account savings as ‘Earning’ when they apply for a loan? Will financial institution regard this earning?
Regards,
ApprenticeUnfortunately you can not use any offset income/saving for serviceability when applying for a home loan.The reason would be that you can access this money after settlement
Offset savings cant be regarded as earnings, because they aren’t earnings.
Pete
I think I did not make myself clear…
But, I’m referring to the interest you saved from your offset account and not the money in your offset account [confused2]. E.g. If you have $100k in a 100% offset acct on your loan with 7.07%, You will save $7070 in a year. Isn’t that $7070 a form of income, that bank just did not pay it to you directly so you do not get taxed?
Hope that makes it clearer…
Apprentice
As I said, it is not income.
My question for you is why would you want to try and use interest earnt (or avoided) on cash in the bank, as extra assessable income in order to borrow more money, wouldnt you be better off to use the cash that you have?
This makes no sense at all…
Pete
I agree with Pete, it is not income and I can’t see any lender regarding it as income. Even if you were receiving interest, it is still unlikely that they will take it into account for serviceability. This is bacause, you could simply take it out of your account at anytime.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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