Will lenders accept Jobkeeper payments as accessible income for loan applications.
The introduction of the jobkeeper payment system has certainly kept many people from plunging into financial difficulty. However, banks and finance companies have been by and large reluctant to accept jobkeeper payments as accessible income. Three of the big banks, NAB, ANZ and Commbank have stated that their policy at this time is not to accept Jobkeeper payments as accessible income. Their rationale would seem to be that the payment indicates some form of long term risk to the receipt of income and therefore cannot be relied upon to meet repayments over the long term.
However, some financiers are taking a more flexible approach and treating each application on a case by case basis. These lenders will consider all aspects of the application and the circumstances surrounding the jobkeeper payment. Factors that will be taken into consideration include:
- If you are receiving the payment but still working your regular hours the lender may accept it as assessable income, as this scenario would suggest that your employer is still operating and likely to emerge from the event as operational and capable of employing you for the foreseeable future.
- For the application to be successful you will need to supply the lending institution copies of your current payslip showing the job keeper payment and copies of your previous payslips showing your regular income.
- Banks will accept whichever income is lower as your assessable income – either your jobkeeper payment or your regular salary – this fulfills the bank’s requirement to act responsibly and not place undue hardship on the borrower
- Usual lending requirements will apply – such as evidence of salary being paid into a bank account
- You will need to be prepared to answer questions about changes in your employment circumstances
While receiving Jobkeeper payments makes gaining approval for a loan application that much harder, it is not necessarily a dead end. Finding the institutions ready and willing to work with you is best left to a professional organisation with the expertise to find the right lender for you. Give Australian Finance Hub a call today to discuss your specific situation.