Pre-settlement employer checks / resigning before settlement

Hi all, I've been reading a few threads about this, but was wondering if there were any changes since so much has changed this year.

I have a long settlement (90 days) for my PPOR. Loan has been unconditional for over a month, settlement is booked for this Friday. I've received an employment offer which I plan to take. I was planning to resign after settlement then complete the 4 weeks notice before starting the new job straightaway.

Unfortunately, it looks like settlement might be delayed... How risky is it if I resigned this week anyway? I don't want to stay indefinitely at my current employer in case settlement keeps getting pushed back. On the other hand I've heard there is a risk that if the bank is aware of the change in circumstances they will decline the loan.

For what it's worth:
- I'm staying in the same industry (~10 years). Same role, for slightly higher pay. It's a full-time permanent role, but I will be on 6 months probation.
- My bank is with St George. Around $1m loan, 80% LVR.
- From what I've heard from my mortgage broker we have a strong application.

I'd ask my mortgage broker, but when I asked him about applying for jobs a few months ago he said that if I told him he would have a duty of disclosure to the bank, otherwise most credit checks are done with that time though a small chance of a pre-settlement check.

Thoughts??

 

1) you need a broker that works for you and looks out for you - asking a hypothetical question to your broker shouldn't be met with that kind of response, in my opinion.
2 ) you'll be fine , very very rare to have a pre-settlement check
If you resigned this week would you still have to work the 4 week notice period? Surely settlement will not be delayed for 4 weeks?
If you were changing industry, reducing income etc then I would be more concerned.

 

Hi Lindsay, thanks for the response.

1) I probably misrepresented my broker! He's actually been very helpful throughout it all, but his general response was, there's only a very small chance it might happen, however if we did let him know then there would be a duty of disclosure to the bank and the bank may decide to reassess the application.

2) Yup, I'll be working throughout the notice period. I'm not planning to take a break in between the roles.

Hard to say if settlement won't be delayed for 4 weeks :/ the reason it's getting delayed is because home removals aren't a reasonable excuse to leave the LGA in hotspot LGAs and the removalists were based in one. Vendor has tried ringing around but apparently most removalists are in the same predicament or all booked out. I'm not too confident on things improving in 4 weeks in NSW unfortunately

 

Quick update: My settlement was delayed. I'm extremely risk averse, so I ended up negotiating a new start date with my new employer instead. I resigned the day my property finally settled. The bank never made any employer checks, so I could've resigned earlier if I'd wanted. Oh, well! At least it's all done now.

 

Congrats on the settlement and thanks for coming back to update us

 

I think this was a wise decision even though it never happened, I would have done similar.

Congrats on the successful settlement.