If You Owe Tax Debt, Can You Still Get a Home Loan?

Owing tax debt can be stressful, especially if you’re not sure how it will impact your future. One common question people have is whether or not they can still get a home loan. Continue reading this credit repair Australia article to find out more!

Having money owed to the ATO is not an idea situation, but it does not mean you can’t get a home loan. When reviewing your application for a home loan, lenders will take into consideration your tax debt as well as other debts and liabilities. They’ll also look at your history of repaying debt and other financial circumstances when making their decision.

Mortgage lenders will want to see that not only can you afford the monthly repayments, but also any other debts or liabilities such as car loans, personal loans or credit cards.

Owing a significant amount of money in taxes to the ATO can also become a factor that hinders your mortgage application. You will most likely have to provide specifics about any outstanding tax debts, as well as any payment plans you’ve already agreed upon when filling out a mortgage application.

If you have an outstanding tax debt, it could be reflected on your credit score- along with other legal debts. This ATO is taking action against many people right now, and if you’re one of them a court judgement will appear on your file. In the future, this might make it harder to get approved for things like home loans as lenders sees judgments as high-risk.

Always remember that not every tax bill will show on your credit report. If, for example, the debt is from an accountant’s mistake or from a one-time event such as selling a property and having to pay capital gains taxes, some lenders may not view you as high-risk borrower. It varies by lender how they handle home loans when the borrower has outstanding debts.

If you anticipate that your mortgage application might be impacted by tax debt or other outstanding liabilities, it would be advantageous to contact a mortgage broker. These home loan experts can offer advice on the best home loan options for your particular financial situation. They can also negotiate with lenders, provide access to exclusive deals not regularly advertised, and manage the application process from start to finish.

If you have been declined credit, or are finding it difficult to get approved for a loan, then contact the credit repair experts at Clear Credit Solutions today. We can help to remove negative listings from your credit file, such as defaults, court judgements and fraudulent enquiries, which will give you a better chance of being approved for a loan.

Our team of experienced professionals know how to improve your credit rating quickly and easily so that you can access the finance you need. Contact us today for more information on credit repair Australia.