Changing Jobs? What to Know Before Applying for a Mortgage

Changing Jobs and Applying for a Mortgage: What You Need to Know

Changing jobs can be an exciting step, bringing new opportunities like higher income, greater fulfillment, and career growth. But when it comes to applying for a mortgage, frequent job changes or even a fresh job move can raise concerns for lenders. Stability is key in the eyes of most lenders, and staying in a job long-term helps build your financial profile and improves your chances of approval.

The Risks of Changing Jobs Before Applying for a Mortgage

Lenders tend to see new jobs as less stable, especially if you’re in a probation period. If your employment history shows frequent job changes in short timeframes, or you’ve just started a new position, they may view you as a higher risk.

Certain job changes, like moving to casual, contract, or freelance work, can make the mortgage process more difficult, even though these roles may come with higher pay. This is because casual and contract work typically lacks job security and benefits, which lenders take into account. Similarly, if you’re switching industries, starting a new business, or overhauling your career, you might face delays and more requirements, such as showing extra payslips or being employed for a minimum of three to six months before applying.

Can You Still Get a Loan?

Yes, you can still secure a mortgage, even with a job change. For lower-risk changes, such as moving within the same industry or accepting a higher-paying role, the effects on your application may be minimal. However, if you’re planning a complete career shift, it’s worth considering the timing of your loan application. Jumping into a new industry or casual work might result in more hoops to jump through with lenders.

If your financial profile is solid and you’ve had a stable employment history up until now, some lenders may still consider your application—even with a new job. But be prepared for additional documentation or a potential delay before you can proceed.

If you're changing jobs and thinking of applying for a mortgage, it’s worth getting expert advice. A lending specialist can help connect you with a lender who understands your unique employment situation and guide you through the process smoothly. Reach out to us at Mint Home Loans to discuss your options. We love finding solutions for tricky situations.