In a world where stability feels like a luxury, your employment status plays a pivotal role in determining not just your day-to-day lifestyle but also your financial milestones. One significant milestone that could be affected is your ability to refinance your mortgage. Yes, you heard it right! Changing jobs or experiencing an employment hiatus can make the terrain of refinancing options surprisingly rocky. Let’s dive in to learn more.
The Tale of Two Scenarios: Job Change and Unemployment
When you change jobs, it’s a mixed bag. On one hand, you might land a job with a higher salary or better benefits, improving your debt-to-income ratio. On the flip side, lenders often prefer borrowers who’ve been in the same job for at least two years. If you’ve switched sectors entirely, it might even give lenders the jitters, questioning the stability of your income.
On the darker side of the employment spectrum lies unemployment. An unemployment spell, even if temporary, is usually a red flag for lenders. No income means no means to pay back a loan. Simple, but brutal.
The Freelancer’s Dilemma
Let’s not forget our gig economy warriors—freelancers and contractors. While you may revel in the freedom your job offers, lenders often see you as a high-risk client. You will need to go the extra mile to prove that you have a steady income, often showing two years’ worth of tax returns.
Your Best Bet: Archer Mortgage Group
In the midst of these fluctuations, it’s important to have a reliable partner to navigate the stormy waters of mortgage refinancing. That’s where Archer Mortgage Group comes in. Specializing in mortgages across Australia, we offer custom solutions to match your unique circumstances, be it a job change or a brief spell of unemployment. Trust us to find you a deal that cushions any employment-related blows.
Your Game Plan
- Check your Credit Score: Before even approaching a lender, know where you stand.
- Gather your Documentation: New job contract, pay slips, or freelance income statements—get it all together.
- Consult a Professional: Get in touch with Archer Mortgage Group to discuss your options.
Ready to make your next big move in the mortgage game? Don’t let your changing employment status hold you back. Reach out to us for an expert consultation tailored just for you.
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