Your Employment

Your employment plays an important part of the credit assessment. Many banks has an internal list of types of employment considered low risks, medium risks and high risks. However, bear in mind that from bank to bank, the list differs and you are unlikely to know what they are.

Low risk employment usually involves employment in stable economic sectors, such as financial institutions, big multinational corporations and established companies. Higher risk employment usually are non-fixed income employment, and this includes self employment or commission based employment. Basically, the banks prefers a customer that has fixed (or stable) monthly income as the payment for a housing loan is also monthly payment (so there is a match in salary receipt and monthly payment).

However, this is not bad news for non-fixed income customers. What you have to be sure of is that your documentary evidence is sufficient as details to your employment.

On another note, banks are also not keen on employees who is currently on probationary employment, preferring confirmed, full-time employed workers. Make sure you have your employment confirmation letter when seeking a loan.

In short, your application has a better chance of approval if:

  1. Your job pays you a minimum fixed salary
  2. Your employment is in a stable environment i.e. less likely to suffer in a downturn
  3. You are a full time, confirmed worker in the company i.e employable
  4. You have full documents of your employment (and income) to support your application.

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