How is changing my job going to affect how banks see my application?

Any general questions you might have in regards to loans and finance.
Reef
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Joined: Fri Mar 22, 2019 12:34 pm

How is changing my job going to affect how banks see my application?

Postby Reef » Fri Mar 22, 2019 12:35 pm

Hi, I’m a software engineer moving to Melbourne to be closer to my wife. I already have a job lined up when I get there in a month. Currently, she is renting an apartment there. Ideally, we would like to buy a starter home in Wyndham Vale. Is changing my job going to affect how banks see my application?

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Otto Dargan
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Re: How is changing my job going to affect how banks see my application?

Postby Otto Dargan » Fri Mar 22, 2019 1:18 pm

Hello Reef. Welcome to the forums.

Most banks are reluctant to approve your home loan application if you’ve been in your job for less than six months. However, there are lenders who allow you to borrow up to 95% of the property value even if you’ve recently started at a new job as long as you meet all other standard bank criteria.

These lenders understand that tech jobs are in high demand and that it's common for tech professional to actively change jobs to seek a higher salary or to receive better working conditions.

Speak with one of our specialist mortgage brokers by calling us on 1300 889 743 or fill in our free assessment form to find out which lenders can help you.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Reef
Posts: 3
Joined: Fri Mar 22, 2019 12:34 pm

Re: How is changing my job going to affect how banks see my application?

Postby Reef » Fri Mar 22, 2019 2:29 pm

I’ll be working overtime most weeks (10+ extra hours) which is pretty standard in my industry. Will the banks accept my bonus income such as overtime pay and bonuses?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
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Re: How is changing my job going to affect how banks see my application?

Postby Otto Dargan » Fri Mar 22, 2019 4:13 pm

Hi Reef,

Since you’ll be starting a new job, it is hard to say how much of your bonus income will be considered by the banks. Your overtime pay may be considered but it will be assessed on a case by case basis. The key with overtime/bonus income is that you need to show a history of regularly receiving this income.

Normally, we may be able to get the bank to use all of your monthly, quarterly or annual bonus income. It all depends on how long and how regularly you receive this income.

You may need to provide a letter from your employer confirming the consistency of this additional income.


Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Reef
Posts: 3
Joined: Fri Mar 22, 2019 12:34 pm

Re: How is changing my job going to affect how banks see my application?

Postby Reef » Fri Mar 22, 2019 6:06 pm

Why are most lenders so conservative? I've been in the same industry for 5 years.

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Otto Dargan
Mortgage Specialist
Posts: 7338
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How is changing my job going to affect how banks see my application?

Postby Otto Dargan » Fri Mar 22, 2019 6:41 pm

Hi Reef,

Many lenders are very risk-averse. They are concerned that if you’ve not been in your job for a very long time then you have a higher chance of leaving your job or your employment being terminated during your probation period.

Our mortgage brokers have extensive knowledge of the lending policies of nearly 40 bank and lenders.

Give us a call on 1300 889 743 or fill in our free assessment form to find lenders that can accept your short-term employment status.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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