Can super be factored in when applying for finance

W

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From: Anonymous


Hi,

Just wondering if any of you had any referrals or thoughts on lenders that would take into account a defined benefit government super fund as an asset (i e I know exactly how much I will be paid when I choose to retire)- when applying for finance on residential property.

Appreciate your input
 
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Reply: 1
From: Alan Hill


Yes, would be interesting to hear.

Amount of Super is certainly a question on some Westpac loan applications......
 
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Reply: 2
From: Rolf Latham


Hi Anon

An asset in what way ? Do you mean as serviceability ?

If thats your question then yes, most lenders will use super income toward serviceability.

Ta

Rolf
 
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Sim

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Reply: 2.1
From: Sim' Hampel


But surely you must be earning that income for it to count ? Just having the super sitting there (which you cannot access for say, another 20 years), would in no way help your servicability ?

 
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Reply: 2.1.1
From: Anonymous


Hi again,

Thanks for your responses. I really meant would it be taken into account say in lieu of a larger deposit (I have some but not much)- and also for a larger loan amount. I'm due to retire in in 5 to 10 years.

Thanks again
 
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Reply: 2.1.2
From: The Wife


Sim, Is it an asset?

TW
~Life is a daring adventure, or nothing at all~
 
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Reply: 2.1.1.1
From: Rolf Latham


Unfortunately, no normal lender that I know would go down that track. A deferred deposit does not cover their position if the need to foreclose.


Ta

Rolf
 
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Sim

Administrator
Reply: 2.1.2.1
From: Sim' Hampel


If it appreciates in value then it is an asset... but that's not the point. If you cannot access it, you cannot use it to service a debt, so for servicability requirements it should not be considered.

This is NOT an argument about whether you should have money invested in superannuation or not.

 
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