Australians are willing to let go of their dream job if it is the only way to boost their chances of breaking into the market and getting approved for a home loan.
According to the latest study by Bluestone Home Loans, close to 70% of savers and 55% of borrowers feel “compelled” to stay in their current job to improve their chances of obtaining mortgage approval.
The trend was more apparent among millennials than those in the older generations.
In terms of location, Australians residing in New South Wales were more likely to feel obligated to stay in their current jobs.
Interestingly, those with higher incomes are just as likely to feel the pressure of maintaining their current career to boost their chances of getting a home loan.
Is changing jobs bad for home loan applications?
One in three borrowers think going after their dream job would put them at risk of not getting approved for a home loan.
Meanwhile, more than half of savers think changing jobs would likely hurt their chances of ever breaking into the market.
Bluestone Home Loans chief customer officer James Angus said feeling trapped in a job is not good for individuals and is not good for the health and innovation of the Australian economy.
“We don't believe you should have to give up on your dreams in order to secure a home loan,” he said.
“That’s why lenders need to take a more holistic - and human - approach to their lending criteria, particularly when many of us don’t conform to the stereotype of what makes for a good borrower.”
Mr Angus said while Australians are reassessing their priorities in the wake of the COVID-19 pandemic, the number of workers resigning has fallen to an all-time low.
Figures from ABS showed that only 7.6% of employed Australians changed jobs in the year to February 2021 — a rate that has been steadily declining since the peak of 19.5% in 1989.
“As home loan affordability has sharply declined over the past few years and lending restrictions have tightened, Australian borrowers have had to make difficult choices about whether to pursue their dream job or to buy a house,” Mr Angus said.
“And the data is showing that many are choosing to realise their financial goal of owning their own home ahead of pursuing their career goals.”
Photo by Marten Bjork on Unsplash.
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