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Will Your Job Stop You Getting A Home Loan?



When a lender is assessing your home loan application, they will pay particular attention to your employment history. Just earning good money isn’t enough – the lender wants to see a sense of security. Your job can even affect your credit score, as lenders may consider that your employment increases the overall risk of not repaying the loan.


You might consider your job to be secure, but a lender will assess the situation differently. Here are some examples of work situations that could negatively impact your ability to secure a home loan.


New job

You’ve been head-hunted by another company, and now you are in a senior position, earning more money than ever before. Yet this is actually not a good time to rush out and apply for a home loan. The lender will see that you have only just started in this new job, which indicates a certain level of risk. Wait for at least six months to demonstrate a steady pattern of employment before applying for a loan.


Casual/ Contract/ Temp workers

If you work through an agency and do not answer directly to an employer, many banks and lenders will consider you high risk, particularly if you are borrowing more than 80% of the purchase price. However, as the workplace is changing and more people are taking on flexible working hours, some lenders are recognizing that contractors, casual staff and even temp workers can rely on a steady income. A mortgage broker can help you identify the lenders who would be most likely to offer you a loan. You can also boost your chances of securing a loan by building on your deposit.


Low base salary

If you rely on overtime, bonuses or commission, some lenders will only look at your base salary and decide that your income is too low for you to be considered for a loan. Others do not want to rely on unstable income to pay off the debt. However, other lenders will take your additional bonus income into account when assessing how you can manage loan repayments. Talk to a mortgage broker about a loan that enables you to make additional repayments when your salary is higher than usual. 


Your industry

Sometimes it’s your workmates who let you down. Some industries are marked “high risk” due to the number of people in that industry who default on loans. A mortgage broker can help you find lenders who look more favourably upon your industry, so you can be approved for a loan. 


Get Expert Assistance

You don’t need to endure being consistently turned down for a loan, and you don’t need to give up on your property ambitions. A mortgage broker has the inside knowledge to help you identify the lenders who are receptive to your employment circumstances. Talk to the mortgage broker about your financial history and the amount of your deposit in relation to the type of property you wish to buy, and they will be able to find a loan package that suits your circumstances from a lender who sees you as a good risk.

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Disclaimer: Financial Solutions (ABN: 41 701 190 619) is a corporate authorised credit representative (Credit Representative Number 500747) of the Welfare Fund Ltd (Australia Credit Licence Number 423050 ABN: 25 155 698 105).  Frank Fontana is a Director of Financial Solutions and is a an authorised representative (Authorised Representative Number 1233081), of MASU Financial Management Pty Ltd (Australia Financial Services Licence Number 231140 ABN: 78 069 358 498). Financial Solutions is also a referral partner of TJL insurance Pty Ltd (Australia Financial Services Licence Number 478959 ABN: 98 613 453). 

Financial Solutions has access to a panel of lenders through National Mortgage Brokers Pty Ltd (ACN 093 874 376 / Australian Credit Licence 391209), which is a fully-owned subsidiary of Liberty Financial Pty Ltd (ACN 077 248 983 / Australian Credit Licence 286596).  Financial Solutions has access to products including those from Liberty Financial.

The information on this website is of a general nature to give an indication of insurance products, financial services and mortgage products. It should not be considered financial advice and does not take into account specific and individual circumstances. Appropriate professional advice should be sought from accountants, solicitors and financial advisers before obtaining a product that takes into consideration individual circumstances.

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