Does period I've worked for affect borrowing capacity?

Hey guys,

I'm starting to shop around, looking at different calculators before I approach a broker. However, one thing I notice is there isn't too much mention about period of work.

For example, ive been working with my current job (I am an accountant) for one year, and I might be moving to another firm for about a 20% payrise. Will this affect my ability to get a loan? I've heard that banks prefer it if I have about 2 years of consistent income from one employer.

On a side note.. is 500k borrowing ability accurate for someone earning 50-60k..?

 

Just go see a broker - online calcs are junk and there isn't a calculator that lets you know each banks policy. Some will be fine, others won't.

 

Their are a heap of lenders that will need you to be employed for a certain period of time but their are others that will accept 1 days employment.

By switching jobs and applying for finance soon after, you just minimize your options. That said the extra 20% income is probably worth that.

Just note however that the 20% increase does need to occur at your base. If it's going to be made up via increased OT for example then it will need to be shown over a number of months before it will get accepted.

 

If you are still on probation with a new employer it is harder (generally).

A broker will help - just call Jess.

 

Depends on the LVR too. Where no LMI involved it is easier and probation may not be a problem.

 

If moving from one f/t role to another in same field - you'll have options.

If moving into a casual role or contractor (ABN) - you may have more issues and limited lender selection.

Generally speaking if you earn 80k in your job and have been there 1 year vs 3 months - borrowing cap won't be different, but more lenders open up the longer your there for.
Ie in both scenarios most lenders will take 100% of income. Some lenders won't accept if you haven't been there long enough depending on their employment policy (e.g Pepper need longer history than CBA).

 

Can borrow a heck of a lot more than that if buying positive income producing assets, or could be less if you have large liabilities or heavily NG.

It is all about income vs expenditure

 

I just did a servicing calc for a guy earning $74k pa and he could borrow up to around $650k as an investment.

 

Switching employers for higher pay in the same role/industry that you've been in for 2+ years should be fine.

Don't mess around with online calcs

Cheers

Jamie

 

great thanks for the response guys. It sounds like i shouldnt have a problem securing 300+k for a IP then.

 

No certainly on the face of it shouldn't be a problem and as Terry mentioned should be able to get the LMI waived given your profession.