company car allowance

Any general questions you might have in regards to loans and finance.
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company car allowance

Postby jasmine » Mon Apr 12, 2010 3:08 pm

Hi there,

Like everyone, I want to borrow as much as possible, my employment package includes car allowance - are there any lenders who would take that into consideration when I apply for a home loan?

many thanks.

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Otto Dargan
Mortgage Specialist
Posts: 7728
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia

Re: company car allowance

Postby Otto Dargan » Mon Apr 12, 2010 3:18 pm

Hi Jasmine,

Each lender has their own view on income received as a car allowance from your employer. Some see this income as being required to cover the cost of travel that is part and parcel of your employment. Others see it as regular income. There are several ways that a lender can assess this income:

* Ignore the allowance as it is used to cover an expense.
* Will allow part of the allowance to be used to offset against any lease payments you may have.
* Will take the full amount of the allowance as normal income.

Generally for people receiving a company car allowance we will obtain the full details of their situation and then use the calculators of several different lenders to see which will lend you the required amount based on the way they assess your income.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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