Is 6-12 months of unpaid leave going to be a problem?

Discussion in 'Property Finance' started by jaybean, 11th Jan, 2016.

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  1. jaybean

    jaybean Well-Known Member

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    E.g. If I have worked for 5 years in the same company, I take 6-12 months off (did not quit, but not being paid either), then upon return, look to purchase a property.

    From the bank's perspective, are they going to want evidence of 6 months worth of income again, or will it be ok because it's technically not a new job?

    Reason being is I'm trying to weigh up the pros and cons of taking some time off.
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Most lenders would probably want you back for 3 months. You'd probably also have to get a letter from your employer explaining when you took the time off.
     
  3. Redom

    Redom Finance Strategist Business Plus Member

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    Depends on the lender - same employer can work well. I don't think there's many you'll need to wait a full 6 months for - you can explain it and verify that explanation and it should work.

    With some lenders and at some times of the year, pretty minimal change. Timing of the year may have an impact too.

    E.g. you come back to work in December after 6 months of, your YTD figure won't show much and they may verify income of latest payslip and group cert. Employment letter can assist.

    You join back on July 1, plenty just go of one payslip and you may not need much verification explaining your time of at all.

    Cheers,
    Redom
     
  4. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Many lenders will be fine with this with letter of explanation and < 80% gearing.
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It can depend on the lvr but as Marty said - an explanation should get this over the line. Grab a letter from your employer.

    Cheers

    Jamie