Mortgage House Provides Tax-Efficient Considerations for Borrowing Requirements
Traditional borrowing requirements ensure that an individual can repay their mortgage. Times have changed. At one point, home loans averaged $150,000. In 2021, they reach $1 million.
As homes become more expensive and homebuyers must borrow more. However, this cycle continues to reach the point where it becomes too expensive, especially for young first-time homebuyers. Thus, solutions exist such as pre-tax considerations.
Individuals can ask their employers to take a predetermined amount from their salary and place it in an account reserved for retirement planning. Next, the individual can turn the superannuation into a self-managed super fund. After setting it up, the individual can invest the funds in properties.
Another option is salary sacrifice. Since the funds come out of the individual’s salary pre-tax, they maximise their income.
Traditional borrowing requirements include three months of bank statements and payslips. Plus, it includes a 20% down payment. Some individuals don’t qualify for a conventional mortgage because they own a small business or work as a freelancer. Therefore, they can only provide limited financial documentation. Mortgage House works with this client by offering them a low doc loan.
To further discuss and optimise pre-tax considerations, speak with a Mortgage House loan specialist. In addition, you can use our online mortgage calculator with no strings attached.
Borrowing Requirements Conclusion
Mortgage House examines each application through the traditional borrowing requirements. Based on the results, our loan specialists take a look at the products that best fit the applicant’s financial circumstances. Then they integrate pre-tax considerations. For more information, contact our team today.