What to Know When Applying for a Mortgage with a New Job – Our Guide
Applying for a home loan with a new job? Here’s what you need to know
It is to most people’s understanding that getting a loan or a mortgage has a common requirement, and that’s for the borrower to be employed for a long time. This is because it proves that the borrower has a stable source of income. Unfortunately, this has been quite a dilemma for the current generation, where many workers hop from job to job, seeking better working conditions and compensations.
If you’re in the same situation, what can you do to get a higher chance of qualifying for a mortgage? What are the decisions that will affect your ability to apply for a loan? Let’s find out.
Assessing Your Ability to Get a Home Loan
When you head out to apply for a home loan, there are a few things a lender will take into account to determine your eligibility:
- Length of time in the current job
- Frequency of job/industry changes
- Time in the industry
- Rate of individuals in the same sector to default on repayments
- Your employment terms
A lender’s job is to determine how likely you are to default on the repayment or, in other words, how able are you to pay back everything. Even if you feel like you can pay back what you borrowed because you love your job or you’re getting a lot of pay, anything can happen.
You might suddenly lose your job, or you might find the job to be boring once more. These are the reasons lenders have requirements, and why one of the requirements is that the borrower must be in the same job for at least a year.
Lending to Individuals that are Changing Jobs
If you’re in the middle of changing jobs, most lenders will not approve your mortgage. However, there are a few lenders out there that will offer a loan to you despite your situation. Yet, they still have some assessment to make. If they find that you did well in your previous job and conclude that you’re only changing jobs for better compensation or working environment, they’ll most likely approve the loan. In addition, if your new role is in the same industry as your previous, and you have a long work history, this also works in your favor.
If, on the other hand, you were fired from your previous job, your chances of getting the loan approved diminish. However, if the new job is enough to support your life while taking care of the repayments, they may still consider approving the loan.
Lending to Individuals with New Jobs
If you’ve already transitioned to a new job, lenders will consider other aspects. If you look promising to them, they’ll most likely approve of your home loan. They’ll check your industry and determine why you’re changing. They’ll also assess your financial strength and experience in the line of work.
Another factor that plays a massive role in your ability to secure your loan your current standing. For example, if you’re a professional with multiple sources of income, high credit score, little to no liabilities, and so on, you up to your chances of a loan. Of course, if you have none of these, you might still be able to get the credit, albeit with a lower success rate.
In conclusion, despite changing jobs frequently, you still have a chance at landing a mortgage. We have lenders who accept 1-day employment for those who have just started a new role.
If you are looking for mortgage brokers in Australia to help you get a mortgage, get in touch with us today! We’re happy to help. We’ll assess your current financial position and lifestyle and match you with the best lender to get your home loan approved from the get-go!
Contact us on on 02 9121 6247 or submit your scenario online.
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Whether you’re a first home buyer looking at entering the market or an existing home owner looking at ways to save money on your home loan, we have you covered. We’ve put hundreds of hours of research into these guides to ensure you end up ahead, and it’s completely on the house.
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We meet for a consultation, obtain your supporting documents and proceed to structure and package your application for approval knowing exactly what the banks want to see. We also monitor your home loan post approval ensuring you’re home loan suits you and your financial position
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With our many years experience in the industry, we’ve been exposed to both easy and complex loan scenarios. Each loan we process gets presented to over sixty financial institutions, ensuring we have explored all options possible and are able to provide a solution
