Tax Debt
Do You Have a Debt With The Australian Taxation Office?
The Australian Taxation Office (ATO) announced that it would start recording tax debt defaults on the credit files of business owners from 1 July 2017.
Having a tax debt default recorded on your credit file can reduce your borrowing power or ability to qualify for a home loan in the future as it will stay on your credit file for 5 years.
Did you know that most banks will not approve a loan to refinance an outstanding tax bill from the ATO. However, we can help you borrow up to 90% of the value of your property (90% LVR) with a specialist lender if you meet the following criteria:
- You must already own real estate, which can be used as security.
- The tax debt plus your current mortgage must be less than 90% of the value of your property when combined
- If you are overdue with your repayments or have a bad credit history, then you must have a reasonable explanation.
- You must be able to prove you can afford the new mortgage using either: Payslip, BAS, Tax Returns, bank statments and/or Accountant letters.
What Are The Benefits Of Refinancing Your Tax Debt?
Paying your ATO tax debt off by refinancing allows you to:
- Avoid High-Interest Debts: Refinance to avoid the high-interest rates associated with business loans.
- Better Financial Management: Consolidate your tax debt and other debts into a single mortgage repayment for improved cash flow.
- Maintain a Clear Credit File: Prevent adverse listings on your credit file, which can make it difficult to secure good interest rates in the future.
- Save on Interest: The interest rate on ATO tax debt (General Interest Charge, or GIC) is significantly higher than specialist loan interest rates.
How Do I Apply To Refinance My Tax Debt?
Contact us today on 02 9095 6888 and talk to one of our specialist mortgage brokers who can help you refinance your tax debt into your mortgage at a lower interest rate.