Business credit cards affect serviceability?

Discussion in 'Loans & Mortgage Brokers' started by hello1234, 9th Oct, 2015.

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  1. hello1234

    hello1234 Member

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    If a person is applying for a home loan, but is also a guarantor of a business credit card, will banks see this as an outgoing against her personal income (at the time of applying for a home loan)?
     
    hello1234, 9th Oct, 2015
    #1
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Technically yes, because you generally spend on the business CC, then have to request the funds to be reimbursed. If the company won't give you the funds, you have to pay off the card.

    Keep the limit as small as possible.
     
    Peter_Tersteeg, 9th Oct, 2015
    #2
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Usually added as a liability - but interest charged on liabilities can generally be added back too.

    Agree with Pete - best to keep limit low so it doesn't become too burdensome on your borrowing capacity.

    Cheers

    Jamie
     
    Jamie Moore, 10th Oct, 2015
    #3
  4. 380

    380 Well-Known Member

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    I guess any cc will dampen serviceability!

    @Redom discussed this topic in detail in one if his post not long ago! You may want to look up that thread!
     
    380, 10th Oct, 2015
    #4
  5. superace

    superace Active Member

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    I've always had to include mine in any serviceability calcs. My business has a company credit card of which I am the guarantor/personal liability. So I ended up lowering the limit from the $8000 that they gave me to a more comfortable $3000. This allows me to operate with it without hindering my personal borrowing/serviceability too much.
     
    superace, 10th Oct, 2015
    #5
  6. Corey Batt

    Corey Batt Well-Known Member

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    If you're a PAYG with corporate card which is paid by the company, generally note it and provide letter from the company stating this is for business and not personal use.
     
    Corey Batt, 10th Oct, 2015
    #6