One of the most common issues that impact your ability to get a home loan is a drop in income.

Whether it's due to a job loss, a change in employment status or a reduction in work hours, any fall in income can make it harder to qualify for a loan or refinance an existing one. If you're self-employed or work on a commission basis, fluctuations in income can be particularly challenging.

Even just changing jobs could make it more difficult to secure finance, especially if you’re changing the industry you work in.

Another potential issue when trying to get a home loan or refinance is taking out additional loans or incurring new debts. For example, buying a new car or taking out a personal loan can increase your monthly expenses and affect your debt-to-income ratio, which is an important factor in determining your eligibility for a home loan or refinancing.

Changes in your personal life can also impact your financial situation, such as having a baby or getting a divorce. These changes can affect your expenses, savings, and overall financial stability, which can all impact your ability to secure a loan or refinance. If you’re a single person, your monthly expenses are assessed differently than if you’re a couple. That changes again when you start having children. Make sure you’re aware of the implications of your family situation and how it might impact your borrowing capacity.

When it comes to securing a home loan or refinancing, it's important to plan ahead for life and employment changes. There are other steps you can take to reduce the impact, including having a larger deposit, working to improve your credit score by paying debts and bills early and avoiding taking out any new loans.