Browse Forums Home Finance 1 Jan 26, 2016 4:28 pm Just wondering if there is minimum employment tenure in the same company that lenders look for in a loan application? Background behind my question is that I've put a deposit down for a block of land due to register around the middle of this year. I'm thinking of changing jobs meaning that with the new job I'll only have a few months of tenure when I go to do the application. Is this something that can cost the approval? Re: Employment history and loan application 2Jan 26, 2016 7:09 pm We needed three months or to be off probation period with the bank of Melbourne not sure if all banks are the same though Re: Employment history and loan application 3Jan 26, 2016 8:50 pm HI, the answer to this question is it depends on the strength of your loan application - if you have a large deposit, if everything else is strong, and maybe your co-borrower is stable in their job, it can work - but before you jump have a chat with a broker. It definitely won't work if you become newly self employed or try an entirely new role. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Employment history and loan application 4Jan 27, 2016 10:44 am Hi ss2211, The short answer to your question is: It will significantly weaken your finance application. This will be especially so if you happen to be in probation at the time a formal approval is required. The more accurate answer as to whether this will prove fatal to your chances of approval will depend upon: 1. LVR - if you are over 80%LVR you'll find the finance options extremely limited or very expensive (assuming any exist). 2. How much you are willing to pay for your finance (rate/fees) even if you are under 80%LVR. The general rule of thumb is: The cheaper the finance, the more strict the credit criteria. The cheapest lenders our company deals with will not typically approve loans for people that are still in probation (perhaps rightly so given the risks). 3. Whether any co-applicants exist (a spouse for example) and whether they have a stable employment history and your total net disposable income is strong. 4. How a lender views your general financial character. If you are a degree qualified professional with an otherwise stable employment history and have a track history of solid financial management (consistent savings balance/debts paid on time) then a recent change of employment is not necessarily a major cause for concern. If your general employment history is rocky and/or you have not demonstrated strong fiscal management with your debt & savings, this could be a factor that tips your application in favour of a decline. 5. Whether this is a promotion within your field of expertise/industry. If so, by how much? A small promotion is not necessarily a big cause for concern. If the role is at a lesser rate of pay, out of your traditional field of expertise or, ironically, a very big promotion (30%+ pay increase), the lender is likely to view the move as adding risk to your financial profile. Hope this helps. Naritas Finance w: https://www.naritas.com.au l: https://www.facebook.com/naritasfinance t: https://www.twitter.com/naritas Re: Employment history and loan application 5Jan 27, 2016 11:26 am Personally I would stay in your current job until you have formal approval. We had to be in the same job for at least 6months and the same line of work. Most of the big banks work on a credit score now like America. The longer you have been in your job the better it looks. Re: Employment history and loan application 6Jan 28, 2016 6:29 pm ss2211 Just wondering if there is minimum employment tenure in the same company that lenders look for in a loan application? Background behind my question is that I've put a deposit down for a block of land due to register around the middle of this year. I'm thinking of changing jobs meaning that with the new job I'll only have a few months of tenure when I go to do the application. Is this something that can cost the approval? It all depends on what the mitigating circumstances are. If you are moving within the same industry and you have moved to a higher paying role, even with probation it might be doable. Otherwise 3 months at your new role is the norm with a lot of lenders. Cheers Tom The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19096 Thanks for the response! However, it's have been sorted. But for others benefit here is what we had to do. Unfortunately, it's not straightforward. BCC washed their hands… 3 7201 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35321 |