Are you sitting out “The Great Resignation” over fears it may hurt your chances of owning your own home?
More and more Australians are feeling torn between the desire to pursue their dream job and the demands associated with getting a home loan approved.
According to research published by Bluestone Home Loans, two-third of Aussies are fearful of making career moves due to the potential impact on their financing prospects.
Bluestone found that 67 per cent of those currently saving for a home loan and 55 per cent of those looking to borrow one felt compelled to stay with their current job in order to improve their chances when it came to getting their financing approved.
Broken out by generation, the data suggested that millennials were significantly more likely to feel that they had to choose between their dream job and being approved for a home loan.
The research found that 36 per cent of borrowers believed that chasing their dream job came at the cost of their chances to get a home loan approved.
Meanwhile, a further 53 per cent of those who felt they had found the right career path for them predicted that it would cost them when it came time to try and take their first step onto the property ladder.
Fifty-nine per cent of respondents based in NSW said that they felt this way, versus 49 per cent of Victorians, 43 per cent of South Australians and 42 per cent of Queenslanders.
While those with children were typically more likely to feel trapped in their current career or job, overall income wasn’t as much of a factor.
Bluestone said that those with high incomes were just as, if not more, likely to feel compelled to stick with a job in order to improve their home loan odds. The company found that 60 per cent of those with a household income of between $100,000 and $149,000 felt compelled to stick with a job for financing reasons.
Compared to the 49 per cent of those earning an income of less than $99,000 and 42 per cent of those earning less than $50,000, high earners came out ahead when it came to feeling like they couldn’t consider a career change due to its home loan implications.
Bluestone chief customer officer James Angus said that Australian borrowers have had to make hard choices in recent years.
“Australian borrowers have had to make difficult choices about whether to pursue their dream job or to buy a house. 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,” he said.
Mr Angus said that the disruptions accelerated and incurred by the pandemic brought to light the inadequacies of a one-size-fits-all approach from lenders.
“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,” he said.
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Article courtesy of Nestegg