New job after recieving home loan approval

Hi All.

I find out in three or so weeks if my home loan application has been approved.
I currently work at a job and have done so for 4 years which is 80k a year.

In about a month (after finding out if approved) i may have an option of a new job, but it is slightly less per annum and via contract (which banks dont like).

Do I have to notify the bank or will my approval be in question after resigning?

 

Yes. It's a bad idea to change jobs mid-house search as it can & will affect your finance pre-approval.

 

It could be an issue. Lower income, change of employment type cause concerns. Some lenders do employment check before settlement,

 

Technically - yes.

They based their assessment on your current financial situation. Any changes to your situation may alter your ability to meet your ongoing liabilities.

Agree with Prop above - it's rarely a good idea to change jobs when applying for a loan.

Cheers

Jamie

 

Damn, thought so!

 

Ideally avoid resigning from your job until settlement. If that can't be helped, at least wait until the loan is unconditionally approved.

There are a couple of lenders that are quite generous about minimum employment periods and employment changes, but the drop in income means relying on this would be very risky.

 

I have heard that most lenders do employment check up to the day of settlement even after unconditional approval, especially during the height of pandemic last year.
Is this still case at the moment? Any particular lenders still perform this check after unconditional approval issued?
I assume this check is taken randomly or high-risk borrowers eg casual, part timers, lvi > 80% etc?

For common payg employees, usually there is 4 week notice period, i.e. can only leave 4 weeks after the resignation is given.
If the 4 wk notice is given, so that starting a new job the next day after settlement, would that still be an issue/risk?
The only risk I can think of is iff the lender calls employer and somehow employer tells lender that the borrower/employee has resigned, even though still employed. How likely is this?

Currently have preapproval with st george and boq. Settling on a property (80pct lvr), and there's an opportunity on the table to move from base payg to payg contractor (where a recruitment agency pays me and i work for a client) for 12 month contract with much higher income. Doing the same type of work and been doing the same for more than a decade without any breaks in employment.

Would this be a risky move still?
Anyone has any insights on what lenders policy in this scenario, esp. st george and boq?
Which lenders will be ok with this situation?

Thanks

 

It never was the case.
some might have done random checks after approval and before settlement.

Still a risky move to resign, I would be waiting myself.

 

Which lenders? Curious

 

What about the Big 4??

 

Thx Rolf
Its quite an eye opener, never realised this. I thought once loan formally approved its done and dusted

 

I've had a few lenders do employment checks prior to settlement. It tends to be random, no specific policies.

In one case, the borrower had changed jobs. The loan still proceeded on the basis it was an 80% LVR and he resigned after the unconditional was issued.

 

You'd want to be upfront about it incase you get hit up on it.

If you want to redo it properly you'd want to answer the following with a professional as it may not affect the outcome of what you want to achieve.


- borrowing more then 80% or not?
- how long is the contract ?
- same line of work?
- obtain 2 payslips
- does the lower income actually affects the borrowing amount you need.