Company directorship and mortgages

[PDC]

The company I work for in Australia would like me to become a director as they need a signatory based in the country. I know that I would be liable should anything go wrong with the company, which I'm sure it won't. However, my husband and I would probably be looking to apply for a mortgage in a year or so, and wondered if being a company director would be a hinderance? Any help much appreciated. Thanks.

[Dan Collins]

The company I work for in Australia would like me to become a director as they need a signatory based in the country. I know that I would be liable should anything go wrong with the company, which I'm sure it won't. However, my husband and I would probably be looking to apply for a mortgage in a year or so, and wondered if being a company director would be a hinderance? Any help much appreciated. Thanks.

 

Good points to consider.

 

This will show up in a credit check on your file. It would be best to outline in the application to the lender before submission, the reason for the directorship and duties plus details of shares you might own. In most cases this shouldn't pose an issue, though it could be a problem if you have given any personal guarantees, which will also show up on your credit file. Unlikely, but just pointing it out. You could also check with your bank for piece of mind.

 

If you're unsure about your legal duties, you might want to check http://www.asic.gov.au/asic/asic.nsf/byheadline/Your+company+and+the+law?openDocument or get additional legal advice about your responsibilities, even if they appear to be minimal and routine.

 

Hope that helps.

[PDC]

Thanks Dan - very helpful. I guess as sadly we won't have a massive deposit towards a house, anything that I can do to keep a nice, clear record would seem to be beneficial. I'll try to hold out becoming a director until we've got a few more pennies for a deposit and taken a step towards looking at our mortgage options.