Recently, we have become aware that lenders are undertaking repeat employment checks on borrowers prior to advancing the funds for a property settlement. These status checks are now being carried out up to the date of settlement.
There are significant changes being experienced by people all over the world due to the current pandemic, and one of the most significant of these can relate to employment status. A borrower has an obligation to advise its lender of any changes to their employment status between the date of the loan approval and the date of settlement, when the funds are advanced.
If there has been a change in your employment status which has not been disclosed to the lender, you might find that the loan is withdrawn and you will not be able to proceed with the purchase. Otherwise, it could result in a delay in settlement if the lender is required to reassess the application based your new employment status and reissue new loan documents.
If your employment status changes after you enter into a purchase contract we strongly recommend that you immediately contact your legal advisor so that they can discuss your options and guide you through the process of making the necessary disclosures to your lender.
If you have any questions in relation to a property transaction, please contact our property team on 02 9525 8688.