Length of employment

[BillyGoat]

I am currently on the hunt for an investment property. I have been in my current job for 5 years and have been offered another job on a higher salary.

Would you:

a) purchase the IP while in my current job when I can show several years of continuous employment;

b) purchase the IP after I start the new job. I will be able to borrow significantly more on the higher income. I won't be able to show continuity of employment.

Which banks, if any, are likely to lend if I take the job? Do banks have a policy, requiring a year or two continuous employment before they consider the income?

 

[jonmardell]

Some banks require 3 months minimum and that you are not on probation. A few have no minimum requirement in the length as long as you are moving to the same roll and industry as your previous position. If you are going to be on probation then your options would be limited.

I am currently on the hunt for an investment property. I have been in my current job for 5 years and have been offered another job on a higher salary.

Would you:

a) purchase the IP while in my current job when I can show several years of continuous employment;

b) purchase the IP after I start the new job. I will be able to borrow significantly more on the higher income. I won't be able to show continuity of employment.

Which banks, if any, are likely to lend if I take the job? Do banks have a policy, requiring a year or two continuous employment before they consider the income?

 

[Shahin_Afarin]

What is the LVR and is the same line of work or completely new profession?

 

[Marty McDonald]

I am currently on the hunt for an investment property.

Which banks, if any, are likely to lend if I take the job? Do banks have a policy, requiring a year or two continuous employment before they consider the income?

Plenty of lenders won't have an issue with the new job and the probationary period but a LVR at 97% would make your credit score an issue and could tip you into a automated decline. Anything at 90% or under and I can't see an issue.

 

[Peter_Tersteeg]

Changing jobs isn't a disaster especially if it's an 80% or lower LVR and it's a similar role.

Rather than waiting so you can afford more on the higher salary, it might be prudent to simply do a budget to determine what you can afford; chances are it'll actually be a lower figure than what the banks are willing to give. Then figure out the type of property you intend to buy and simply make the purchase when the right property comes along.

Definitely talk to a broker to make sure your expectations are in line with the banks, but make the purchase on your terms, not the banks.

 

[Jamie M]

Changing jobs doesn't need to be the end of the world as other have mentioned. We recently had a 95% deal approved for someone who had just started a new job (same field) and was subject to a probationary period.

There were other aspects of the deal that gave it strength - it's just a matter of putting together a good case as to why credit should give it the green light and placing it with a lender that suits the scenario.

If the LVR isn't in LMI territory than it shouldn't be too difficult.

Cheers

Jamie

 

[Aaron_C]

It's no problem if you are in same industry. As Marty said it all depends on credit scoring. Under 90% with probation is no issue particularly if you are an existing customer.