Job Change after Conditional Approval

LEnlightened23 on 27/01/2024 - 09:33

Hi,

Really need your advice please.
I have been working in IT industry from last 10 years and my wife is a full time registered nurse.

We applied for our off the plan apartment which is about to ready in carlton (Melbourne)agreed to pay around 35% of deposit.

We have recieved the conditional approval. However I have changed my job after the conditional approval at higher wage same industry which is really stressful and looking for another move again.

Revaluation will be next week and settlement will be in March first two weeks.

Would like to ask how safe I am?
The mental stress at the current job which I cannot handle at all sadly.

Thank You.

Financial

Comments

  • John Kimble on 27/01/2024 - 09:42
    -2

    Would like to ask how safe I am?

    80% safe

    Edit:

    The mental stress at the current job which I cannot handle at all sadly.

    25% safe

    FYI Try not to handle the mental stress "all sadly" though. Try handling it well, it should help.

    Good Luck!

  • djones145 on 27/01/2024 - 09:48

    dont worry u can blame
    the gov…
    the rba…

    blame ozbargain!

  • twotwotwo on 27/01/2024 - 09:54
    +2

    Not financial advice.

    If you have signed forms with the bank then you are good. If you have just got pre-approval which is "nsaini23 You’re conditionally pre-approved for $800,000.00" you should talk to your banker. For my home loan I was in constant contact with my banker and he was good. Told me exactly what not to pay for the property as the bank has their own valuation. Good luck on the purchase and congrats. Big milestone!

    • Enlightened23 on 27/01/2024 - 10:11

      I have recieved a conditional approval of 420000. Evaluation is starting next week. Im agreed to pay 37% of the property. Guess still in a safe zone if bank Evaluation bit lesser.

      Things im worry about job change in the same industry may be little lower wage.

      • twotwotwo on 27/01/2024 - 10:23

        How little is little. 10K? Are you going from 110 -> 100? that is little or 40k to 30k ?

        • Enlightened23 on 27/01/2024 - 11:07

          Well, i worked for state government for 7 years at 100k.

          Got a better opportunity last September with 25k extra with 6 months of probation.

          Stepped up again as an assitant manager with 13pk. Realized im on another level of shit show.

          My skill is lucrative and will happily get the job at minimum 115.

          However, my wife is on 85 and we have 40% deposit.

          • twotwotwo on 27/01/2024 - 12:22

            @Enlightened23: While I am not the bank. I have seen people with less deposit and household income and get approved for higher loans. a 420k loan have repayments of under 3k a month. Very doable I think, unless you have many dependants.

  • Muzeeb on 27/01/2024 - 09:58
    +5

    Always put your mental health as priority number 1

  • holdenmg on 27/01/2024 - 10:02
    +1

    You can have a look at the Position Description and compare it to what you are actually doing. If it is radically different or additional to that stated, then maybe you can discuss with your employer.

    It sounds like looking for another position is the best move, but be careful you aren't walking into another role that is "really stressful"

  • AngoraFish on 27/01/2024 - 10:10
    +1

    Banks will only typically look at your last three paychecks, what happens in the future is up to you. Banks do not particularly care if you later change your job after all the loan paperwork is signed, and couldn't withdraw your loan anyhow at that point even if they did.

    To be safe, however, I wouldn't be starting a new job until after your conditional approval becomes locked in and signed actual approval.

    • deme on 27/01/2024 - 10:23
      +1

      Have you ever read a loan contract? It will say that if anything changes before settlement you need to tell them

      • AngoraFish on 27/01/2024 - 10:34
        -1

        The relevant clause typically only applies to a "material adverse change". Just changing jobs would not normally be enough. You are absolutely not required to disclose every minor change to your circumstance.

        • deme on 27/01/2024 - 10:35
          -1

          What a stupid comment.

          material adverse change

          OP said: However I have changed my job after the conditional approval at higher wage

          Of course that's both material and adverse.
          Even if the money were the same OP is now in a probation period.

          • AngoraFish on 27/01/2024 - 10:38

            @deme: No. OP said that they had received conditional approval when they were working at a lower wage job, have now moved to a higher wage job that is too stressful, and are now thinking of looking around for another job again.

            Right now they will need to submit all the paperwork again based on their current circumstances because conditional approval is not actual approval, it's just the bank indicating that you are eligible to take out a loan with them.

            What we're talking about it what happens if OP decides to leave their current higher wage job for a new job, something that is presumably months away given that they will need to go through an interview process, give notice to their current employer, etc.

            • deme on 27/01/2024 - 10:40

              @AngoraFish: I think you need to work on your comprehension skills as I copied and pasted from OP.

              If you are planning on quitting your job the day after you get a loan that needs to be disclosed.

            • Enlightened23 on 27/01/2024 - 11:04

              @AngoraFish: Hi,

              Let me put a light on this:)

              I worked for state government for 7 years.
              Changed my job on 11th September 2023 (it was on 6 months probation). Salary increased 20k
              Recieved conditional approval on this.

              However, recieved higher level job with 5k more. But its another level or shit show.

              My skill is very lucrative and will get a job without any hastle.
              My salary is being paid on a monthly basis.

            • Enlightened23 on 27/01/2024 - 11:10

              @AngoraFish: Thats exactky right,

              I jumped the wages from 125k to 130k,

              However, salary is on monthly basis every 15th and i will receive the notice to settle loan by end of February.

              My notice period at work is just one week:)

              • deme on 27/01/2024 - 13:37
                -1

                @Enlightened23:

                My skill is very lucrative

                I jumped the wages from 125k to 130k

                Both of these cannot be true.

      • Dollar General on 27/01/2024 - 12:29

        Something like 40% of loans are liar loans and banks know it. You think they care? House prices only go up in Australia YoY so they don’t care, particularly when someone like OP has a 40% deposit

        • deme on 27/01/2024 - 13:35
          +2

          Got a source for 40% of loans from Australian banks are fraudulent?

          • Dollar General on 27/01/2024 - 14:16
            +2

            @deme: “The bank's annual survey of around 900 people who took out a mortgage over the past year showed that 41 per cent submitted loan applications that were not completely factually accurate — so-called "liar loans".”

            https://www.abc.net.au/news/2021-09-11/liar-home-loans-mortg…

            Would be even higher now

            • deme on 27/01/2024 - 14:18
              +1

              @Dollar General:

              Something like 40% of loans are liar loans
              41 per cent submitted loan applications

              Trying again, these are just applications not granted loans.

              • Dollar General on 27/01/2024 - 14:21
                +3

                @deme: They get approved in the end. Mortgage brokers in particular know how to massage the figures to get them over the line

                The world you live in people may be totally honest and corporations have the best interest of their customers at heart, but let me tell you, in the big smoke, no one cares what happens next week, that’s someone else’s problem

        • JIMB0 on 27/01/2024 - 17:52

          If you have a big enough deposit the banks don't scrutinise the serviceability that much as they know they'll get their money. These days they are a bit more careful as they don't want to be accused of irresponsible lending after the Royal Commission.

          • Dollar General on 27/01/2024 - 19:09
            +1

            @JIMB0: ASIC has failed in trying to prove irresponsible lending with mortgages. Google westpac wagyu and Shiraz to see how bad they failed

  • Euphemistic on 27/01/2024 - 10:22
    +1

    Once you’re approved and have the loan you can do what you want. You could get the loan and then quit work the next day. Once granted, the bank only cares if you can keep paying or not.

    However, you should make sure that any change of job/circumstance still allows you to pay your loan.

  • loropy9 on 27/01/2024 - 10:32
    +3

    A few big banks/lenders that I have dealt with in the past have refused outright to consider any loan applicants tat are still in their probation period 3-6 months. Conditional approval is not a final approval. The lender will/may request the most recent payslips before they grant the final approval. Maybe ask your lender before you make any moves. If you are fearful that they might put your enquiry on your file, maybe try to make an anonymous call and ask this as a general question of interest rather than specific to your case.
    After the settlement date no one cares what you do for a living and how much you earn as long as you make the payments.

    • Enlightened23 on 27/01/2024 - 11:05

      Thank You, i will call the bank and ask.HSBC

  • Dollar General on 27/01/2024 - 12:27
    +1

    With 40% deposit it ain’t going to be an issue.

    Just wait til settlement before you move jobs though

  • WreckTangle on 27/01/2024 - 14:18

    Is the new role permanent and full time? You may be okay. If it’s temporary or part time you may be in trouble.

    • Enlightened23 on 27/01/2024 - 16:41

      Permanent full time. Thank you, 😇 ll give 4 weeks notice and that might be enough to process loan hopefully.

  • JIMB0 on 27/01/2024 - 17:56

    One you're unconditionally approved it's unlikely they'll check employment, particularly with a large deposit. I had a loan go through a month after I was unemployed. This was through one of the big 4 banks, smaller ones may be more careful.

  • SydStrand on 27/01/2024 - 18:08
    +1

    We applied for our off the plan apartment which is about to ready in carlton (Melbourne)agreed to pay around 35% of deposit.

    If I were you, I'd hit up the Site Inspections guy

  • hsbc on 27/01/2024 - 22:22

    Talk to your banker, only he can access your situation and update you

  • jonkvh on 28/01/2024 - 13:31

    Talk to the bank. Honestly, I've seen banks not give a stuff to re-apply. You can read the fine print all you like, it comes down to the face-to-face moment in the bank.

  • Enlightened23 on 11/02/2024 - 11:04
    Merged from Chances of Loan Approval

    Hi,

    I have provided deposit of 40% off-the-plan, First home, No credit cards, no liabilities.
    My wife is working full time physiotherapist (secured job)

    had a conditional approval of loan already of 420k. under the process of getting unconditional approval upcoming week. Valuation has been done already.

    I'm working in IT from last 10 years and changed my job and on probation. However, its getting very hard for me to stay on this role and really want to quit. My salary was from last years 125k.

    I have calculated the borrowing power of my wife which makes 320,000 and i have to be earning only 20k a year to make it to 420,000. We have been paying rent consistently from last 3 years.

    How safe am if I lose my job tomorrow in the middle of the loan process?

    • Hybroid on 11/02/2024 - 11:14
      +5

      No one can answer that question for you. It depends on the bank/lending organisation's risk appetite & algorithm.

      A broker may be able to offer their advice based on prior experience but again, not necessarily the case for you.

    • EightImmortals on 11/02/2024 - 11:15
      +9

      "How safe i am if i loose my job tomorrow? in the middle of the loan process?"

      Not very.

    • 87percent on 11/02/2024 - 11:15
      +2

      If you get approved for the loan, how will you pay it with only potentially 1 salary for an amount of time?

    • geekcohen on 11/02/2024 - 11:38
      +3

      I'm working in IT from last 10 years and changed my job and on probation. However, its getting very hard for me to stay on this role and really want to quit.

      Do this AFTER you have got your loan, house and all of that.

      Don't do it beforehand or anything because that will impact things. Either that or you need to move from Job A to Job B, have no drop in between. However, that is still risky due to Job B possibly having a probation period, which some banks do not like. Even in your current job being on probation is risky.

      I have provided deposit of 40% off-the-plan, First home, No credit cards, no liabilities.

      When is it due for completion?

    • Kail on 11/02/2024 - 11:42

      Don't quit your job until you have a new one lined up, problem solved?

      • geekcohen on 11/02/2024 - 11:43

        Still sometimes risky

        • Kail on 11/02/2024 - 11:44

          It sounds like he's already on probation though. Either way, the worst thing he could do is leave his job and be unemployed.

          • geekcohen on 11/02/2024 - 11:51

            @Kail: Ah yes, I missed that. Well overall, even for unconditional approval, its still going to be a risk being on probation.

    • Salternative on 11/02/2024 - 11:49
      +1

      If the valuation has been done already , then the titles are close to being registered if not already registered which means settlement should be within the next 3-4 weeks. So not that far off.
      I am assuming you already have a pre approval which is being converted to full approval. As long as within 3 months of pre approval, conversion to formal should only require a verbal confirmation with most banks .
      Normally after a full approval , the banks do not check if you are still employed till settlement. Having said so, they are within their rights to do so, and will do it if for example something flags a risk or fraud alert. The T & C's state that they can withdraw the formal loan offer. I would suggest staying with the probationary job till settlement and quit then , for ongoing PAYG employment , most banks will run with it. After settlement you can quit as with resi mortgages, there are no annual or ongoing reviews unlike commercial .
      With a Low LVR and relatively low lending plus with both of you being a qualified professional, its unlikely you will end up in financial strife , but maybe look at borrowing a bit more to have a bit of a buffer , as going 60% LVR is only going to give you a few bps at most off the book rate , and with offsets, the effect is mitigated anyway.
      Its not a black and white , there are quite a few intricacies and policy that need to be covered, speak to your broker/lender rather than get advice from a forum.

    • xuqi on 11/02/2024 - 12:14
      +7

      https://www.ozbargain.com.au/node/828369

      You wife was a nurse 2 weeks ago and is now a full time physiotherapist?

      Losing a job anytime during a load approval process is a Red for lender/s. Have you considered lining up a new job so you can switch instead of being unemployed?

      • hentabara on 11/02/2024 - 13:06
        +4

        2 wives?

        • tsunamisurfer on 11/02/2024 - 15:09
          +4

          3 incomes. Auto approval.

    • Wiadro on 11/02/2024 - 14:20

      off the plan is what will cause it to not be approved

    • ihfree on 11/02/2024 - 14:29

      420k

      69%

    • enzioFirenze on 11/02/2024 - 16:08

      so you have a nurse wife and a physiotherapist wife?

      • Enlightened23 on 12/02/2024 - 07:44
        -2

        ts just a role play scenario, tomorrow i might ask loan approval question regarding buying a house in NT. Its all about getting information regarding ehats available in the market.

        • kiitos on 15/02/2024 - 18:18

          Wtf?

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