07 May 2021

How Long Do You Have to Be Employed to Get a Mortgage Loan?

What is a low deposit loan?

When it’s time to apply for financing to purchase a home, the mortgage loan and employment history do go hand in hand. Lenders use employment as a metric to determine repayment probability. Most lenders prefer an applicant with at least three months of current employment. The following are more home loan and employment history details to consider.

Full-Time and Long-Term Employment

Full-time and long-term employment has been the preferred applicant status by lenders for decades. It is the one that delivers the least amount of risk. This applicant also has a solid credit score and repayment history. 

In the course of life, things happen. Sudden layoffs, lockdowns, or a shift in the economy can hit anyone. As long as you are in your current job for at least three months and past the probation period, lenders like us at Mortgage House will consider the application.

To help applicants get on the same page as us, we offer our free online mortgage repayment calculator.  

Part-Time Long-Term Employment

Part-time employment that’s long-term receives more consideration in today’s market than in the past. Our lending experts have tools at their disposal that help them find the midpoint between risk and reward. 

Even though this is part-time employment, lenders still expect applicants to be at their current company for at least three months and past the probation period.

Freelancing Employment

The labor force sector in freelancing employment is expanding. Freelancers struggled in the homeownership market. That’s no longer the case. Innovative tools and thinking have led to the development of new mortgage products such as the low doc loan.

A freelancer still needs to show that their income is long-term. One of our lending specialists can walk you through this application.

Mortgage Loan and Employment History Conclusion

Most lenders prefer applicants with at least three months of full-time employment at their current company. Employment history determines an applicant’s ability to repay their mortgage. If there are reasons why your current employment status is sketchy, there are ways to offset it. A larger down payment, collateral, or a guarantor are some options. 

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