Younger Australians stay in jobs to secure home loans, survey reveals

Younger Australians stay in jobs to secure home loans, survey reveals

More than 60 per cent of Australian home owners and property savers remain in the current job to improve their chances of securing a home loan, instead of pursuing their dream job.

The survey conducted by Bluestone Home Loans included more than 1,000 owners and savers, revealing 36 per cent of borrowers believe that pursuing their dream job has hurt their chances of buying a home or being approved a home loan. 

Bluestone Home Loans chief customer officer James Angus said with home loan affordability sharply declining over the past few years and lending restrictions tightening many borrowers have had to make difficult choices about whether to pursue their dream job or to buy a house.

“But feeling trapped in a job isn’t good for individuals and it’s not good for the health and innovation of the Australian economy,” Mr Angus said. 

“Now more than ever, people have different hopes and aspirations and prefer to choose different paths to success.

“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.”

Despite people reassessing their priorities and job prospects in the wake of COVID-19, resignations are at a record low, Mr Angus said. 

“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.

According to the Australian Bureau of Statistics just 7.6 per cent of employed Australians changed jobs in the year to February 2021, a number which has been steadily declining since the peak of 19.5 per cent in 1988-89.

The Bluestone survey revealed Millennials are more likely than older generations to feel compelled to stay in their current jobs with 72 per cent compared to 54 per cent for Gen X. 

However, interestingly those with higher incomes between $100,000 and $149,000 are also likely, if not more, to feel compelled to stay in their current job or career.

Borrowers in NSW were most concerned to change careers ranking the highest at 59 per cent, compared to 49 per cent in Victoria, 43 per cent in South Australia, 42 per cent of Queenslanders and 38 per cent of those in Tasmania, Northern Territory and ACT.

For those borrowers not already in their dream job, 40 per cent were planning to pursue their preferred career path within five years of buying their home, with 25 per cent planning to change jobs/careers within the next two years. 

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