“[Applications were declined] some banks more than others, ”he said. “Your argument is that you withdrew your super, but you were not entitled to it. You screwed up That means there is a problem with your character. “
Sharon Xie, credit manager at Home Loan Experts, said one of the first questions brokers asked their clients now was whether they had accessed their super credit.
“Lenders will require prospective borrowers to explain the circumstances of the super-withdrawal and whether the eligibility criteria have been satisfactorily met,” she said. “The other thing to consider is how badly your income has been impacted, and this can have an impact on your creditworthiness.
“To the best of my knowledge, some deals have been turned down due to a lack of satisfactory explanations or potential borrowers have failed to show savings and have only relied on the super funds for deposits.”
The early release program launched in March allowed those in financial difficulty to withdraw up to $ 10,000 tax-free this fiscal year from their super accounts and up to an additional $ 10,000 this fiscal year.
But there are strict admission criteria: You must be unemployed, have been laid off, have a working time reduction of at least 20 percent since the 1st
Those who abuse the system face fines of up to $ 12,600 and could face a tax bill on the amount withdrawn. So far, no fines or notices have been issued.
Other major lenders, including ANZ, Westpac, NAB and ING, said each loan application would continue to be considered on a case-by-case basis.
Xavier O’Halloran, director of Super Consumers Australia, said banks were right to ask for a full picture of your financial situation and saving habits.
“People who have access to their super are obviously trying to cope with a pretty immediate financial situation,” he said. “You are unlikely to think long-term about the impact this could have on refinancing or borrowing.”