12 March 2024
How can changing jobs or getting a loan impact your mortgage application?
Lisa Grondsma
Financial Specialist

Making big life changes, such as changing jobs, marrying, or taking on new debt, is all part of the normal cycle of life. However, these types of events can affect your chances of mortgage approval.

Lenders look closely at your finances and stability when approving you for a mortgage. Avoiding these life changes is important when still applying for a mortgage. This blog will explore different factors affecting your mortgage application process in the Netherlands.

Impact of changing jobs on your mortgage application

When applying for a mortgage, it is fairly apparent that losing your job would not benefit your application process. But even voluntarily changing work positions carries risk.

Imagine you are busy securing a mortgage when a great job offer comes your way. This job could mean more income and a chance for a larger mortgage. However, it also brings some financial uncertainties. For instance, a six-month contract might replace your current permanent job with a new opportunity, and there might be a probationary period to navigate.

If your employment history has a gap, you may need to show proof of assets or savings to compensate for the lost income. The application procedure becomes increasingly challenging in this instance, as the banks need to meticulously check your reliability in meeting your repayments.

Be aware that changes to your pay structure can also negatively impact your mortgage application status. For instance, if your employment switches from salary-based to partly commission-based – this could present issues.

Additionally, if you switch to being an entrepreneur/self-employed, even if you earn more than you were at your prior job, this still changes your mortgage application process.

Overall, depending on your situation, it might be advisable to play it safe by staying at your current job until the loan is signed, sealed, and delivered.

How do mortgage lenders handle job changes during the application process?

  • Most lenders discourage job changes during the mortgage offer term.

  • New income is considered only without a probationary period and an immediate indefinite contract.

  • Otherwise, the average income from the past three years is used.

  • Final approval is usually withheld during the probationary period.

  • Some exceptions for specific professions with future income consideration.

  • An employer's statement is needed for a new job with permanent employment.

  • Safe to change jobs after mortgage approval.

  • Consider financial stability for continued mortgage payments, especially if income decreases.

Personal loans and mortgage

Applying for a personal loan or having other debts in your name, such as student loans, personal loans and credits, a phone subscription, or a lease car, may impact your mortgage application. Any debt you carry impacts your mortgage options.

Always discuss adding new debts or, for instance, car lease agreements with your advisor when your home loan is being assessed. Paying down existing balances increases your options and might be crucial when applying for a home loan.

Mortgage lenders aim for as much security as possible when lending you hundreds of thousands of euros to purchase a home. Major stability-altering life changes should be well-planned, especially during the mortgage process. Play it safe to get the best terms.

Other factors that can affect mortgage application

Getting married is exciting, but marrying someone who lives abroad and is not registered in the Netherlands can complicate your mortgage application process. Depending on the country's marital law and your marital/prenuptial agreements, each partner might need to be on a mortgage deed. Additionally, if you are getting a divorce, you must complete this before applying for your mortgage.

If you plan to marry or divorce, be fully transparent with your mortgage advisor/mortgage lender if you plan to marry before closing your mortgage. Give them advance notice of your upcoming nuptials so they can adequately prepare to evaluate your profiles. Be sure to thoroughly gather all necessary income documentation, pay stubs, tax returns, and credit reports for you and your partner well ahead of time so your application isn't delayed.

Consider getting a registered partnership or cohabitation agreement at the notary to clarify your financial arrangements in writing. While only sometimes mandatory, being able to present a prenup to your lender if asked could help simplify things.

For more information on how factors like getting married or debt can affect your mortgage application process, we recommend contacting our advisors at Mister Mortgage for personalized advice on your mortgage decisions.

Are you looking for a mortgage advice?

Schedule a free call with one of our mortgage advisors

Meet the team
Sezer Yilmaz
Lisa Grondsma
Financial Specialist
Egle Kemezyte
Growth Marketer
Robin Uijtdehaage
Client Director & Financial Specialist