buying ip when about to loose employment

Discussion in 'Loans & Mortgage Brokers' started by Elives, 24th Jun, 2015.

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  1. Elives

    Elives Well-Known Member

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    Hi all,

    i have a rough idea that i'm going to loose my job in about 3 weeks if i sign a contract now (45 day settlement) and normally finance taking 1 week (have already bought using same bank)

    after they approve me would i be in the clear? do the banks give the broker a written approval document?

    Cheers,
     
    Elives, 24th Jun, 2015
    #1
  2. Beelzebub

    Beelzebub Well-Known Member

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    I purchased my PPOR and as soon as finance went through I quit my employment to go back to uni. Don't tell the bank and you should be fine; however, this might not be seen as the right, ethical thing to do. Or the smartest financial decision if you're unemployed. But I did it and didn't have any issues. Once approved how would the bank know otherwise?
     
    Beelzebub, 24th Jun, 2015
    #2
    bob shovel likes this.
  3. bob shovel

    bob shovel Well-Known Member

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    haha love these threads.
    as above its doable but not technically correct.
    make sure its pos geared too!
    ill sit back and enjoy the coming posts:cool:
     
    bob shovel, 24th Jun, 2015
    #3
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The lender will seek a declaration about material event disclosure. The lender may cancel your approval on the settlement date when they find you lied and have no job. Risky
     
    Paul@PAS, 24th Jun, 2015
    #4
  5. tomlemke

    tomlemke Well-Known Member

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    I have had the bank call my employer 1 week before settlement to do a employment
    check 3 days later i lost my job :eek::D the upside was that redundancy money
    helped with renovating the property.
     
    tomlemke, 24th Jun, 2015
    #5
  6. Beelzebub

    Beelzebub Well-Known Member

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    Thank God that didn't happen to me.

    I really would't advocate doing it. I did it because I was in a job I hated; I had plans in place to be able to service the debt while I took a year off to do a DipEd; I expected settlement to go through before I quit and started back at uni (but it didn't); and I was willing to lose my deposit in order to continue with my original plan of leaving my job, rather than being stuck in a job I hated for another year.

    But it was a little terrifying and with more complex circumstances than I could ever be bothered or want to divulge here.

    It also made me realise, on reflection, that I have what is probably an unacceptable tolerance for risk; which I need to be mindful of when making decisions.

    I wouldn't recommend it.

    Beelzebub
     
    Beelzebub, 24th Jun, 2015
    #6
    D.T. likes this.
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hiya

    You're asked to disclose this info when applying for finance - it's a significant change to your situation.

    Some banks will do an employment check - some won't.

    Some will do a random spot audit, pull out your file and call your employer the day before settlement! One of the majors done this to one of my clients recently.

    Cheers

    Jamie
     
    Jamie Moore, 24th Jun, 2015
    #7
  8. D.T.

    D.T. Specialist Property Manager Business Member

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    Great write up beelzebub, I'm doing similar
     
    D.T., 25th Jun, 2015
    #8