Major mortgage warning for millions of Australians as job 'red flags' exposed: 'High risk'
Nearly a million Australians now work more than one job - that's a record number, according to the ABS. Enterprising young people have embraced the 'side-hustle'.
That could mean working in a regular 9-5 job while developing an after-hours small business or passion project of their own. It could also mean moonlighting for a fast-food delivery service or babysitting through services like Kiddo for a bit of extra cash.
Money is the top motivation for Australians considering a job move over the next year, according to research from Compare the Market.
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About 69 per cent of the working Aussies surveyed said they were considering a role change, with 51 per cent listing salaries as their biggest decision driver.
Other factors included work from home privileges (14 per cent), wanting to work reduced hours (9 per cent), development opportunities (11 per cent) and leaving a toxic culture (6 per cent).
What we do to earn a living can be so many things these days.
But while our world of work is evolving, it's taking longer for old institutions like banks and lenders to catch up.
So, how can our career choices impact our chances of getting a home loan?Banks don't want anyone to have to default on their loan. It's a painful and costly process for individuals, and a risk to lenders.
Some banks won't lend to people in certain professions they deem 'high risk'.
That could be due to the variability of income (like a small business or freelancing) or known industry challenges that could put a professional at risk of a career disruption in future.
If you find yourself in this situation, you may be able to improve your chances of getting a home loan by teaming up with someone with a steady job.
That could be your spouse, a sibling or even a parent who's happy to co-own a property with you.
Have you had more than a couple of different jobs over the past 12 months?
You may need to prove that you can stick with the next one for a year or two to show the bank that you're a safe pair of hands.
It's important for aspiring home buyers to be able to demonstrate they have a steady income, so the lender is confident they can meet mortgage repayments.
Similarly, if you're new to a job or on a short-term contract, you could be seen as a higher risk compared with borrowers with a strong track record of job security.
But don't despair.
All banks have different qualifying criteria, and you might find that while one lender says 'no', another could say 'yes'.
Having a good deposit raised and a strong credit score can also help improve your chances.
Banks love professions that are known to be in demand and provide a steady income stream.
That's why doctors, nurses, lawyers and accountants can often avoid the dreaded lenders' mortgage insurance without having to raise a full 20 per cent deposit.
It's a great way to get a foot in the door a bit faster.
Just remember you'll pay interest on the full loan amount, so there are still advantages if you're able to raise a bigger deposit as well.Sign in to access your portfolio
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