How important is
Employment Status in
Applying for a Mortgage
“Very Important” is the best answer to this question. Each lender will have their own criteria and each job can be uniquely different. There are some general criteria that apply to most lenders. You are definitely best to talk to a professional Mortgage Broker to get some clearer guidance.
Today’s work environment has dramatically changed in recent times and lenders are struggling with the instability of a lot of modern day employment. Your employment status has a large bearing on your loan approval.
To confirm your employment status, most lenders will contact your employer. You will also need to provide proof of employment by way of a number of consecutive payslips.
As a rule of thumb, the longer you have been in the same job the better. Below are some guidelines to help you.
Full Time
This is always the preferred status for lenders. If you have been employed for 3-6 months or more in a full time job, this will be looked on favourably.
Permanent part-time
Although not quite as secure as full time employment, it is reasonably accepted by many lenders. The lender will most likely do an employment check to confirm the actual number of hours you work each week.
Casual employment
Generally, lenders will shy away from applications from people with casual employment. Obviously casual employment means that your income is less certain. Speak with your mortgage brokers as they may have home loan options that may suit your employment status.
Changing Jobs
Everybody changes jobs from time to time. The question is are you moving up the stability and income ladder, or down? Lenders will want to examine your pay structure, whether you are staying in the same industry, your experience in the industry and your debts and expenses.
Employment status and stability can be complex and is not always black and white. Therefore it is usually a good idea to talk to a good mortgage broker who can help guide you.