Changing jobs before home loan approval can be a smart career move, but it can feel stressful if you are also trying to get a home loan approved. Many borrowers assume a job change automatically ruins an application. In reality, it depends on what changes, when it changes, and how clearly it can be verified under the lender’s policy.
In this guide, we will walk you through what banks and lenders typically assess if you change jobs before pre-approval, after pre-approval, or right before settlement. You will also learn what documents may help, what can trigger re-assessment, and how to reduce the risk of delays.
If you are buying in NSW, speaking with mortgage brokers in Sydney can help you understand which lenders may be more comfortable with your employment scenario, especially if your income type is not straightforward.
Before we get into the details, it helps to know one key point: lenders are assessing whether the income that will pay the loan is likely to continue, and whether you still meet servicing rules at the time the loan becomes unconditional.
Why Job Changes Matter More Than Most Borrowers Expect
A home loan is assessed at more than one point in time. Many applications go through stages, and your employment position can be checked again if the lender needs to confirm you still meet their requirements.
ASIC sets expectations around responsible lending for credit licensees, including that credit contracts should not be unsuitable for the consumer.
To add another layer, authorised deposit-taking institutions follow APRA guidance on mortgage lending and serviceability assessment, which can influence how affordability is tested.
So even if your job change feels “better”, the lender may still need to confirm the numbers and the stability.
The 3 Checkpoints Lenders Often Care About
Most “job change” issues come down to timing. In plain terms, lenders tend to look at three checkpoints.
1. Before you apply
This affects your initial eligibility and the documents you can provide. It may be simple, or it may mean extra verification.
2. After pre-approval, before unconditional approval
Pre-approval is often conditional. A lender may reassess income, debts, and employment if something changes before unconditional approval.
3. After unconditional approval, before settlement
Even late in the process, some lenders may still verify key details again if something has changed or if settlement is delayed.
With those checkpoints in mind, let’s break down what banks are usually looking for, and what tends to cause delays.
Job Changes Before You Apply: What Usually Matters
If you have not applied yet, you often have more room to plan.
Here is what lenders commonly look at.
Staying in the same industry or role type
If you move to a similar role in the same industry, and your pay structure stays stable, many lenders find it easier to assess. It is usually simpler to evidence ongoing employment and income consistency.
A change from permanent to permanent is often the cleanest scenario, but it still depends on probation, income type, and payslip evidence.
Probation Periods, The Detail People Miss
Probation is one of the most common friction points when assessing probation and home loan approval.
Some lenders may treat probation as a reason to request additional documents or confirmation, depending on the role and overall application strength.
What lenders may consider includes:
- whether you are moving into a permanent role or a fixed-term contract
- whether you have a strong employment history in the same field
- whether your income is base salary or includes variable components
- whether your deposit, savings, and overall file reduce risk
A clean way to think about probation is this, it is not always a deal breaker, but it is often a reason the lender may ask more questions.
Income Changes, What Counts As “Material” To A Bank
A job change is not just about the employer name. From a lender’s perspective, what matters is whether your assessable income changes.
Typical “material changes” include:
- lower base income
- moving from PAYG to casual, contractor, or self-employed
- adding commission or bonuses as a larger share of total pay
- losing allowances that were previously used for servicing
- changing hours, especially from full-time to part-time
Some lenders can verify PAYG income using payslips and bank statements, and may require more history for variable components, particularly where unusual employment loans may be relevant. As one example of current market practice, Unloan outlines that document requirements can differ depending on whether income is based on salary, commission, casual, or seasonal.
Changing Jobs After Pre-Approval: Why Lenders Can Reassess
Many borrowers treat the pre-approval stage like a final approval. In practice, pre-approval is often conditional.
If you change jobs after pre-approval, the lender may:
- request your new employment contract
- request updated payslips and bank credits
- reassess your borrowing capacity
- re-check living expenses or liabilities if your situation changed
- update your risk grading if your employment type changed
This is why we usually suggest telling your broker or lender as soon as you know a change is coming, because surprises late in the process are what cause settlement stress.
Changing Jobs Right Before Settlement: The Real Risk Is Time
The biggest risk close to settlement is not always “decline”, it is delay.
A delay can happen if the lender needs:
- updated income evidence
- a fresh employment check
- updated confirmation of conditions
- updated servicing due to a rate change, valuation update, or timing issue
Changing jobs after approval can complicate the process, especially if your income type or probation status changes and the lender needs updated evidence.
If you are working with Unconditional Finance, this is where our process can help, we can flag the job change early, confirm what the lender is likely to request, and help you prepare the right documents so you are not scrambling days before settlement.
What Banks Typically Verify, And What You May Be Asked To Provide
Even though each lender differs, the evidence requests usually fall into a few predictable buckets.
Common documents lenders may request
- employment contract or letter of offer
- recent payslips showing year-to-date income
- bank statements showing salary credits
- confirmation of employment details through your employer or HR
- explanations for gaps, role changes, or probation conditions
Some lenders also use different document mixes depending on your employment type.
A good one-line takeaway before we move on, the lender’s goal is to verify income stability using documents they can rely on.
What Can Make A Job Change Look “Higher Risk” To A Lender
This is where borrowers benefit from plain language. The lender is not ranking your job title, they are looking at risk signals.
Job changes that can be harder to assess include:
Moving to casual, contract, or self-employed work
Not impossible, but policies can require more history and stronger evidence.
Changing industry completely
A big shift may raise questions about income continuity, especially if probation is involved.
Taking a pay cut or reducing hours
Even temporary reductions can affect serviceability.
Switching to commission-heavy structures
Commission and bonuses may be assessed conservatively, or only after a track record.
How Serviceability Rules Interact With Job Changes
Even with the same loan amount, your borrowing capacity can move around based on assessment rates and buffers.
APRA has confirmed the mortgage serviceability buffer remains at 3 percentage points following its macroprudential settings update.
What this means in practice is:
- lenders assess your ability to repay at a higher interest rate than the one you start on
- if your income drops, or becomes harder to verify, you may fall short faster than expected
- even “small” job changes can matter if your servicing position was tight
How To Reduce Risk If You Need To Change Jobs
You cannot always pause life plans, and sometimes changing jobs is non-negotiable. The aim is to avoid avoidable problems.
Tell your broker early
Early notice gives you options, including lender selection, timing strategy, and document prep.
Keep your documentation clean
Have your new contract, first payslip, and proof of salary credits ready. If you are moving to variable income, you may need more history.
Avoid stacking changes at once
A job change plus new debts, plus a larger property, plus a shorter settlement can compound risk. Where possible, space big changes.
Consider timing around unconditional approval
In some scenarios, waiting until after unconditional approval or settlement may reduce complexity, but it depends on your lender and your circumstances.
When A Quick Check-In May Be Worth It
You may want to speak to a broker sooner rather than later if:
- you are in probation and buying soon
- you are moving from PAYG to contract or self-employed work
- your income will drop, even temporarily
- you are close to settlement dates
- your pre-approval amount was already near your limit
Job Changes And Home Loan: A Calm Plan Beats Last-Minute Surprises
Changing jobs before or after home loan approval is not automatically a problem, but lenders usually want the story to be consistent, documentable, and stable at the key checkpoints.
If you would like to sense-check a job change against current lender policies, Unconditional Finance can help you compare lender approaches and understand what documents you may need before you commit to a property or settlement date.
Disclaimer: This information is general in nature and does not take into account your personal objectives, financial situation or needs. Credit policies vary by lender and can change without notice. Before making a decision, consider getting independent financial advice and speaking with a licensed credit representative or lender about your circumstances.
Frequently Asked Questions (FAQs)
Yes, it may be possible, but it depends on the timing and the type of change. If you change jobs while your application is under assessment, the lender may need to reassess your income and employment details. This can involve reviewing a new contract, updated payslips, or bank statements. Some lenders may proceed smoothly if the role is similar and income is stable, while others may pause the application until sufficient evidence is available.
Not automatically. Pre-approval is usually conditional, so a job change after pre-approval can trigger a reassessment rather than a cancellation. The lender may review your new income, employment type, and probation status before confirming unconditional approval. Outcomes vary by lender and scenario, which is why early disclosure is important.
Some lenders may accept borrowers who are still on probation, while others may prefer probation to be completed. Acceptance often depends on factors such as whether the role is permanent, whether you stayed in the same industry, and your overall financial position. Being on probation does not automatically mean your application will be declined, but it may require additional verification.
It can be, depending on the lender’s policy and your income history. Moving from permanent PAYG employment to contract or casual work may require a longer income history or consistent earnings evidence. Some lenders may assess contract or casual income if there is continuity of work, but borrowing capacity and document requirements can differ.
Yes. Even late in the process, lenders may re-check employment details before settlement, especially if there are delays or updated conditions. Letting your broker know early allows them to confirm what the lender may require and help you prepare documents in advance. This can reduce the risk of settlement delays.