KnowHow founder Bushy Martin says those who are relying on the JobKeeper scheme as their source of income will face a number of challenges.
In a recent live ‘Bush Bite’ video on Facebook, Bushy Martin said people on JobKeeper will likely face issues with their borrowing capacity and will need to consider their home loan and finance plans in the medium term.
“For example, if you’re looking to refinance your home loan or you’re wanting to get a home loan, then JobKeeper will be picked up on your payslip … and there is a requirement to do that,” Bushy said.
“The impact of JobKeeper varies by the bank. So every bank is going to treat this differently. But essentially, what most of the banks are doing is they’re taking the lowest common denominator in terms of your salary and deciding whether they’re prepared to (let you) borrow.
“So, if you’re likely to be refinancing to cut costs or you’re looking to downsize or buy another property or doing something in the short to medium term … and you’re earning more than $1500 a fortnight and JobKeeper is listed on your payslip, the banks are only going to fund you or service you or allow you to borrow based on $1500 a fortnight.
“Now, if you’re fortunate enough to be in a position where effectively your salary’s increased as a result of JobKeeper, that $1500 a month is still not going to get you very far in relation to how much the banks would let you borrow.”
So what does the future look like moving forward? Well, JobKeeper is supposed to finish at the end of September, but there are now calls for it to be extended.
The Australian Government is still working on the best way to end, gradually phase out or replace JobKeeper in the upcoming months. Prime Minister Scott Morrison has also alluded to future plans and the steps that will occur post JobKeeper. However, those on JobKeeper will need to wait until at least 23 July 2020 before there will be any answers.
In the meantime, you may be feeling the pressure and wondering what the next step is to free up your finances and gain financial confidence.
That’s where KnowHow can help. Thanks to the team of expert property advisors, many property owners have freed up to $1200 a month through a quick and easy process. Find out more here.
Listen to the full Bush Bite video on Facebook below. Want to know more? Bushy talks more about JobKeeper here.
KnowHow founder Bushy Martin shares regular, live ‘Bush Bite’ videos on his Facebook page sharing tips and tricks to cut costs, boost your savings and take advantage of opportunities in property. Connect with Bushy here.
KnowHow is helping Australian property owners put an extra $400 to $1200 a month back in their pockets. Want to find out how? Contact us and we’ll tell you in 15 minutes if this is for you (no catch, no BS!).