If you’re in the process of changing jobs while nervously exploring your options for pre-approvals and home loans, how do you separate fact from fiction?
It’s estimated that Australians will have an average of thirteen jobs during the course of their lifetime. If we measure that amount out over a forty year period, that’s roughly an average of a three year stint per place of employment.
While some would view that as a short tenure, the fact of the matter is that the workforce landscape isn’t the same as it was ten years ago. Many argue that Millennials have driven the change as they seek higher pay to keep up with the increasing cost of living, but also actively chasing things like greater employee satisfaction, flexible working conditions, and of course, climbing the career ladder.
Although it makes sense on paper, there’s one faction that doesn’t usually feel as enthusiastic about changing jobs – lending institutes. Banks like stability, and a recent job change or lots of them can be interpreted as a bad sign. However, does changing jobs put you on the back foot when applying for home loans?
Getting A Pre-Approval After Changing Jobs
Before handing over what is usually a loan for a few hundred thousand dollars, banks and lending institutes each have their own strict sets of criteria that the applicant needs to meet before getting approved.
While having a new job or being on probation could impact your mortgage application, it greatly depends on your industry, previous work history, as well as other background information that is taken into consideration such as outstanding debt, and your credit history. Basically, changing jobs right before applying for home loans won’t do you any favours, but it doesn’t necessarily mean an instant decline.
From the perspective of a lender, if you have just started a new job or are on your probation period, then you are unfortunately deemed to be a risky applicant. The simple fact of the matter is that many people land what they consider to be their dream job, only for it to not quite work out that way. Sometimes jobs just aren’t the right fit and people leave, and banks and lending institutes are all too aware of it.
Above all, lenders are concerned about risk. If you are otherwise able to prove to be a favourable candidate for a home loan, you may still be in with a shot. Things like a sizable deposit, a history of regular savings and a clean credit report will all work wonders in improving your application. If you have moved to a new job in an industry you have been part of for many years, and you have a history of staying in previous positions over a number of years without jumping between too many places of employment, it is also likely that this may help to boost your chances at getting a preapproval.
Apart from ticking all the right boxes, one of the best things you can do when it comes to getting approved for a home loan is to partner with a reputable mortgage broker. Regardless of whether you’ve been in your job for three months or thirty years, mortgage brokers are industry professionals who know the ins and outs of the world of home loans. Not only will they be able to suggest lending institutes that are best fitted to your own set of individual circumstances, but they can also help you with your documentation to ensure your application hits all the right notes.
Taking The Stress Out Of Home Loans
The big attraction of buying your own home is just that – it’s yours, once you’ve paid back the banks of course. Apart from having somewhere to live, the quest for home ownership is also about having a long term investment strategy. If we’re looking at it from the viewpoint of decades instead of months, generally house prices do rise, and so does the value of your investment.
With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best.
If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product. Subject to lenders terms and conditions, fees and charges and eligibility apply.
Credit Representative 499652 is authorised under Australian Credit License 389328.