I have had an increasing number of clients who have withdrawn funds out of their Superannuation under the Australian Tax Office ‘Early access to Super‘ policy.
What many of these clients don’t realise until they meet with me is what impact this can have on their borrowing because Banks and Lenders view clients who access their Superannuation in a different way to, here’s what you need to know
Disclaimer –
I am not a Financial adviser and I can therefore not give any advice around superannuation withdrawals and if it is, or isn’t something you should consider. This blog it to show you how the majority of Banks and Lenders will view your application should you wish to access your super.
For advice around your Superannuation you should contact your Superannuation company, your Financial planner or the ATO directly.
The majority of Banks and Lenders I talk to about Super withdrawals all view it as a sign of financial distress, which is not ideal when you are asking the bank or lender to lend you money to purchase a home.
There are always exceptions to the rule, and I have personally seen some clients who accessed their Super when their work hours were reduced however there was no long term income reduction and the banks and lenders were ok with this however, as a general rule, it’s not something that the Banks and Lenders are happy to consider.
If you’re thinking about, or have taken funds from your Superannuation as a result of COVID 19 then this is how the majority of banks and lenders view it…
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