Thinking of Buying A House? You Might Want to Stay in Your Job
People always come up with resolutions every year – things that they vow to do or change about themselves. Some people want to invest in something like a house or a car. Others want to switch careers or find something new to do. If you’re one of those people who plan to buy residential property and simultaneously looking for a new job, you might want to hold off on one of these plans for a while.
Uncertainty when it comes to your financial future is one of the things that most banks worry about when we talk about giving out mortgages. According to experts, buyers with uncertain financial standing are going to have a hard time applying for mortgages if they are planning to buy a house – especially with the current situation concerning the royal commission. The rules surrounding a buyer’s employment can be quite a problem for those who are planning to find a new one. Lenders nowadays are concerned about the length of one’s tenure or how long they have been in the job. This is something that proves security – they can be sure that an applicant will be able to repay their loan. Nowadays, there’s much more scrutiny among borrowers unlike before.
It’s not to say that those who just switched jobs won’t be allowed to borrow funds for their house, but banks will have to make sure that the buyer has finished the probation period that normally takes a few months. According to experts, the probation period will be taken into account. This was not the case in the past but under new rules and regulations, stricter rules are applied.
The thing is, lenders would want buyers to see that they have held a job for more than six months because this establishes a great financial standing. Other experts say that certain professions could be given some special considerations such as jobs in medicine where this industry is in demand. It’s an industry where getting a new job is much easier compared to others. Those who are buying a new house because of a new job can also be given some considerations so it definitely depends on the situation of the buyer.
Although it could hinder a buyer’s chances, there are still banks out there that are lenient on their conditions when it comes mortgages, and it’s up to you to find the one.