Home Buying Advice - Changing Jobs

If you are thinking of changing jobs then you may want to think again. For the majority of people this is not a problem but there are certain circumstances when changing your job can impact your mortgage application.

Changing Jobs and How It Impacts Your Mortgage Application

Changing Jobs

Employees who receive a salary

If your salary does not take into account over-time, bonuses or commissions then changing jobs should not be a problem, unless you change your line of work or you take a pay cut.

Employees who are paid hourly

If your income is based on hourly wages and you work a straight forty hours a week without over-time, changing jobs should not create any problems.

Employees pay includes commissions

If your pay includes commissions (unless it is a small percentage of your pay) you should seriously consider not changing jobs until after you have purchased your home. When determining your loan amount the lender requires 2 years worth of commission pay history.

Changing jobs will create uncertainty regarding your future earnings potential, even if you remain in the same line of work. Please seek advice from your mortgage broker before changing jobs.

Employees who receive bonuses

If a large percentage of your income is made up of bonus payments then please reconsider changing jobs until after your home purchase. The lender requires 2 years of proof of bonus income and so changing jobs may mean that any potential bonuses will not be included when determining your loan amount. The only exception to this is if the bonus payments are guaranteed by your new employer.

Part-Time Employees

If you receive your pay based on an hourly wage and you do not work more than 40 hours per week then do not change your job. Again the lender will look at past earnings and if you change jobs there are no guarantees of how many hours you will work and thus how much you will earn.

Employees who receive over-time pay

Overtime pay is not usually guaranteed so it is difficult for the lender to take into account when calculating the amount they will lend you. The only exception to this is if you have been working for your current employer for more than 2 years and in this case the lender can take overtime into account based on past earnings.


This is the most risky area. If you are thinking of starting your own business or even changing your line of work then please do not do this until after your home purchase.

The mortgage lender requires 2 years of pay history for self-employed people, this is especially true if you are just starting your business.

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