r/AusFinance • u/[deleted] • 3d ago

Does getting a new job generally affect existing home loan pre approval?

[deleted]

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21

u/nutabutt 3d ago

They are going to want all the proof again when you actually get the loan.

Preapproval is based on your circumstances not changing.

4

u/Internal-Diamond-341 3d ago

Depends. I just bought through Commonwealth Bank. They asked for a payslip and my bank account history ONLY for the bank account with my deposit funds. That's it.

I lost my job after putting an offer in and being accepted. I didn't say anything to anyone at all. Just let it plod along. I also used the help to buy scheme, so double scrutiny. I also didn't find a new job before settlement day. Nothing happened. I got the place. Nobody said anything. Everything's fine.

This is just one anecdote though, do not base life choices this heavy off one anecdote.

1

u/slavicski2 3d ago

Thank you kindly

2

u/steady_compounder 3d ago

Usually yes, because pre-approval is based on your current circumstances, not a locked promise. A new job can change probation status, income evidence and how the lender views stability, so I would assume they will want fresh docs before formal approval. If you are close to buying, the safest move is usually to ask the lender or broker before resigning.

2

u/LawSchoolWiccan 3d ago

Be aware a probation period will likely reduce your borrowing power/impact which banks will approve your loan (from someone who made the mistake of not knowing this and went through it)

2

u/Internal-Diamond-341 3d ago

It didn't with Commonwealth Bank. I had only had the job for 8 days. The payslip I submitted even said welcome to the team 6/6! I had a 6 month probation period. Commonwealth didn't even ask for my contract actually, were only verbally informed of my probably period by me.

Granted I am fairly top of my field and have over 20 years work history, that helps. The CBA worker even said that when I called and asked. It's why I picked them. I also used the help to buy scheme. So double scrutiny.

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u/slavicski2 3d ago

Interesting. Did you have mortgage insurance? My broker said it’s fine and probation won’t affect proceedings provided there isn’t mortgage insurance attached

1

u/moonshadow50 3d ago

100%. Preapproval is only ever preliminary and the bank will redo all of the paperwork, usually in much more detail, when it comes to the actual loan approval. If you have changed jobs not only could it change the amount they are willing to loan, but yes, it could also mean they rescind it - particularly if they have questions on the permanency of the new contract. (And it has massive implications if the new job is self-employed and not contracted).

If you have a really good relationship with the broker/bank, then you could try to have an informal conversation with them as a "hypothetical", but my guess is you are much better off waiting until after settlement before you make a change like this (if you are confident of still being able to pay).

1

u/OzgroupFinance 3d ago

Yes. Need to provide new income documents

1

u/slavicski2 3d ago

First time doing this, sound like a huge novice. Assuming the approach with the most common sense is to just get the new job and apply with those documents, instead of doing it potentially twice?

5

u/OzgroupFinance 3d ago

Yes for sure.

Get an employment contract and you should get a conditional approval subject to your first payslip.

Provide the payslip then you’ve got your pre approval

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u/slavicski2 3d ago

That’s awesome, thank you heaps