Aug 7, 2025
How lenders view employment stability
Employment stability gives lenders confidence that you can meet your mortgage obligations. Generally, lenders look at the following:
A consistent work history in the same industry is considered favourable.
Most lenders prefer applicants who have been with their current employer for a certain period.
Full-time and permanent roles are viewed more favourably than casual or contract positions.
Some lenders may require you to complete your probation before approving a home loan.
How changing jobs can impact your home loan approval
If you change jobs but stay in the same industry with a higher salary, many lenders will still consider your application favourably, provided you have passed the probation period. Some lenders may even accept your application during probation if your income is stable.
A career change to a completely different industry can be viewed as a higher risk. Lenders may be concerned about your ability to maintain steady income and may require a longer work history before approving your loan.
Many employers have a probationary period of 3 to 6 months for new employees. Some lenders are cautious about approving home loans if you are still in probation, as your job is not yet permanent. However, some lenders may consider your application based on other strong financial factors, such as savings and credit history.
Switching from full-time employment to contract or casual work can make loan approval more difficult. Lenders typically prefer applicants with at least 12 months of consistent income in casual or contract roles to ensure income stability.
Ways to strengthen your home loan application after a job change
If you have recently changed jobs, you can still improve your chances of home loan approval by:
Waiting until after your probation period: Some lenders prefer to see at least six months of employment history.
Providing proof of consistent income: If your earnings have increased, show pay slips, employment contracts and bank statements.
Demonstrating strong financial health: A good credit score, low debt levels and a solid savings history can help reassure lenders.
Considering specialist lenders: Some lenders are more flexible with job changes and may approve loans even if you are in probation.
Already pre-approved for a loan?
If you have received pre-approval, unconditional approval or are still waiting to hear from your lender, it is important to know that any changes to your employment situation can cause delays. This might put your property purchase at risk -especially in a competitive market where sellers will not wait for extended approvals.
Lenders may reassess your application if your income changes or if they view your new role as unstable. This could result in a reduced loan amount or even a declined application.
In some cases, you might be required to start the application process again. Depending on the lender, this could mean waiting several months before you are eligible to reapply.
What to keep in mind
Changing jobs does not necessarily mean you cannot get a home loan, but it may impact which lenders will approve your application. A mortgage broker can assess your situation and help find lenders who are more flexible with job transitions.
If you are considering a job change while planning to apply for a home loan, reach out to Select Loan and Mortgage for professional guidance suited to your situation. We will help you navigate the process and connect you with lenders that match your needs. Getting advice early can help you make informed decisions and reduce the risk of delays in loan approval or settlement. Your full financial situation would need to be reviewed before acceptance of any offer or product.
