Thinking of starting your own consultancy, taking a sabbatical, or pivoting into something new? Don’t overlook your mortgage.
I’ve spoken to several clients who’ve been caught out after making a career or lifestyle change. While your mortgage strategy could be the key to making an exciting change happen, timing is everything!
Here are three things to consider before taking the leap:
1. Lending is easier while you’re still PAYG employed
Most lenders assess borrowing capacity based on your current employment status. If you plan to move into self-employment or reduce your hours, it can be much harder to qualify for a loan, even if your long-term earning potential is solid.
🛠️ Consider securing lending approval before making that move
2. Cash-out refinancing can help fund your next chapter
If you have equity in your home, you may be able to access it through a cash-out refinance. This can be used to support a business launch, career break, study sabbatical, or professional training, without draining your savings or taking on high-interest debt.
📊 Interest rates on home loans are typically (much) lower than personal loans or credit cards
3. Interest-only periods can support transitions
During a period of reduced income or cash flow uncertainty, an interest-only structure (for a limited time) can lower your monthly repayments. This gives you breathing room while adjusting to your new lifestyle or income model.
🧘 It’s not for everyone, but in the right context, interest-only periods can be a smart bridge.
Key takeaway
Your home loan shouldn’t hold you back from your next move—it should work with your goals, not against them.
If you’re planning a change in the next 12–18 months, it might be worth reviewing your options now.
📩 Message me or book a quick chat if you’d like to explore your options—no obligations, just insights