Hi All,
Just wanted to know if anyone has used Salary Sacrificing options in their employment packages and if so how that affected your borrowing capacity if at all?
That is, if I earn about 55k, - 12k before tax for salary packaged vehicle lease, = 43k gross income on paper. But do the lending institutions take into account the fact that 1 no longer have to pay for that 12k out of after tax earnings when they calculate how much I can borrow on my paper income of 43k? Or do they just ingore this and lend to you based only on the 43k which would obviously reduce my borrowing capacity?
I'm just trying to work through the negatives of salary sacrificing. I plan to buy an IP in next few months and am also considering salary sacrificing the car, but don't want this to hurt my ability to borrow to buy the IP.
What are peoples thoughts?
Thanks,
MF.
Just wanted to know if anyone has used Salary Sacrificing options in their employment packages and if so how that affected your borrowing capacity if at all?
That is, if I earn about 55k, - 12k before tax for salary packaged vehicle lease, = 43k gross income on paper. But do the lending institutions take into account the fact that 1 no longer have to pay for that 12k out of after tax earnings when they calculate how much I can borrow on my paper income of 43k? Or do they just ingore this and lend to you based only on the 43k which would obviously reduce my borrowing capacity?
I'm just trying to work through the negatives of salary sacrificing. I plan to buy an IP in next few months and am also considering salary sacrificing the car, but don't want this to hurt my ability to borrow to buy the IP.
What are peoples thoughts?
Thanks,
MF.