Allowances and serviceability

Discussion in 'Loans & Mortgage Brokers' started by Cimbom, 15th Aug, 2018.

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  1. Cimbom

    Cimbom Well-Known Member

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    Just wondering if work allowances contribute towards serviceability at all? These would be paid on top of the regular salary for a specific role and duration. If they are accepted, is there a minimum duration you'd need to be receiving it for most lenders to count it as income? This is just a hypothetical as I'm interested in applying for some roles at work. Thanks :)
     
    Cimbom, 15th Aug, 2018
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Generally not, but depends on what sort of allowance.
     
    Terry_w, 15th Aug, 2018
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    there are a bunch of lenders that will allow 80 to 100 % of allowance

    higher duties is a tough one though

    ta

    rolf
     
    Rolf Latham, 15th Aug, 2018
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  4. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Some lenders are much better at allowances than others - some will take 100% from the first payslip, but as Rolf says higher duties isn't generally accepted due to the perceived short term nature of it.
     
    Jess Peletier, 15th Aug, 2018
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