Hi all,
We have 3IPs and a PPOR. For the Year 2009-10 my taxable income was $124K. Last year tax refund was @15K and this year it is @16K.
I read somewhere that I can ask my employer to cut less tax every month and pay me $$$ more (16000/12=1333). So, it will show in my bank statement that I have got more income and I can get one more loan.
Any body has done it before? please guide me how to do it.
Thanks.
Hi vsdabhi
Sorry, but your Gross Income is all that lenders are interested in
Some lenders will automatically calculate a 'generic' negative gearing benefit and use it in servicing, but this is reducing liability rather than increasing income.
If you earn >$124,000 per annum, you are a very high income earner, but if your lender applies a Debt Servicing Ratio based on a percentage of your 'after tax, after expenses' disposable income, then for your new loans it is time to change (not refinance, just put the new loans) to a lender which calculates $1 surplus each month.
No doubt you have already discussed this with your Broker.
DSR lenders are great when the income is low - it is almost impossible to over commit yourself using their forumula
But when, like yourself, you are a high income household, the lender which will be your friend is the one which uses a different model
However, the 221D PAYG Withholding Tax Variation can certainly help with cash flow. No business would wait 15 months for payment, so why would you wait until, say, September, 2011 for expenses incurred and rebate due to you in July, 2010?
If you can get the rebate each month as you go along, it makes much more financial sense than waiting for eroded value dollars a year or more later
cheers
Kristine