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IP loan but quitting job.

Discussion in 'Property Finance' started by redflag, 14th Jul, 2015.

  1. redflag

    redflag Member

    Joined:
    1st Jul, 2015
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    Location:
    Qld
    I want to borrow 200k +- for an IP. Im willing to put in 150k.
    I have savings/investments over 300k as well as own another IP value 300k, and have around 350k equity in ppor.

    My plan is to have my new IP slightly positive or negative geared so at worst it doesnt cost a lot. I envisage renting and dont see a problem in the area.
    My problem is Im leaving my job in 4 months.
    My current mortgage with AMP.(150k debit)
    Would prefer this as stand alone morgage as I would rather not use the title on my other IP.
    What are my chances?
    Cheers
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Perth WA
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    The bank will ask you to disclose any significant changes to your future financial situation. If you're planning on quitting your job - they'll expect you to inform them and explain who you'll mitigate this (ie. a new job lined up in the same field). Chances are they won't be overly thrilled with any mitigation strategy you provide though.

    Cheers

    Jamie
     
  4. leon brown

    leon brown Active Member

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    Location:
    nsw
    what if you had pre approval put an offer on an I/P and got accepted .
    and quit your job a few weeks before you settle ?

    will the lender want payslips and statements before you were to settle ?
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    you'd be running a big risk of not getting the loan approved - and then losing your deposit etc.
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Sometimes they do an employment check prior to settlement, in which case you'll be rather stuffed.
     
  7. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Location:
    Melbourne, Nationwide
    Frankly:
    * Once the loan is fully approved (after you've purchased and the lender has issued an "Unconditional Approval" letter), odds are the lender will not ask you for any further verification of your income.
    * It is possible to get a pre-approval, quit your job and still purchase an IP within the pre-approval period. Quite often lenders don't re-verify income once a pre-approval has been granted...
    * ... this is not always the case however. Last week Westpac asked for more payslips and bank statements from a client who we believed previously had a solid pre-approval. Good thing he hadn't quit his job in the meantime.
     
  8. albanga

    albanga Well-Known Member

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    In your experience when they ask for more payslips have they usually only been employed with the company for a shortish period < 1 year?
     
  9. leon brown

    leon brown Active Member

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    Location:
    nsw
    so there are no conditions you can add to the offer to hedge your bets before going unconditional?
    I take it that 9 times out of 10 your in the clear once unconditional ?
     
  10. redflag

    redflag Member

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    1st Jul, 2015
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    Location:
    Qld
    No job lined up yet but keeping fingers crossed.
    Thx for the replies. Guess I will be waiting, or maybe just contact a lender and start a dialogue and wait until my next job.
    Cheers
     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    There are, but no vendor will give you ideal conditions.
     
  12. leon brown

    leon brown Active Member

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    Location:
    nsw
    would subject to 21 day finance condition be a good start ?