My memory is that your lender will need to confirm your employment status just before you draw down the loan.
So if you are still on medical leave at that time, it will immediately raise a hare.
Keeping current life insurance for new mortgage (cancer)
- Thread starter Canmar
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So if you are still on medical leave at that time, it will immediately raise a hare.
Wasn't there some new legislation that there would be a five year expiry for disclosure? Can any one recall?
Wasn't it 5 years after being in remission?
No, but if they see you are on sick leave they are entitled to ask about when you will return to employment.
@Sarah Ryan I would be interested to understand more what guaranteed insurability option is?
If you have it (and you'd be paying a bit extra for it), you have an option to increase the level of life cover up to a specified amount without having to give any medical details.
Dr Strangelove
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I don’t think an employer will spontaneously disclose the medical status of an employee to a third party.
Depending on sick leave arrangements an employee may be on full pay and even if not the payslip may not mention sick pay.
I would certainly hope not.
However, a prudent lender would look for confirmation from Acme Ltd before drawdown that Jack Smith is currently in full time employment as a Coyote Catcher.
If Jack is on medical leave, I don't believe Acme Ltd could provide that confirmation.
Dr Strangelove
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You can be on sick leave and full-time employment.
Employers are very reluctant (I have recent experience of this) to disclose anything about an employee’s medical condition.
If the question is "is Jack Smith employed full-time by you?", the employer will answer "yes", even if the question is asked on a day when Jack Smith happens to be on leave. It doesn't make any difference whether the leave is annual leave, sick leave or any other kind of leave.
Brendan Burgess
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The key issue here is that the OP should act honestly in their dealings with their lender and make full disclosure of their medical condition.
Dr Strangelove
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They should answer truthfully any questions they are asked.
I don’t make a habit of spontaneous telling service providers my medical issues.
Brendan Burgess
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No, but you should tell a lender of any serious issues which would impact their decision to lend to you.
In this specific situation I would not tell the bank I had cancer unless explicitly asked about it. The bank is making a financial assessment, not a medical one.
They're covered if you die, since you already have life insurance.
If your monthly income isn't affected much by the sick leave, and your employer confirms they expect you back to work then I don't see why they need to know any more.
Quite frankly that is a ridiculous statement.
Under no circumstances should anyone volunteer information about their medical conditions to a bank.
And in reality, the bank do not want to know it either. They would be opening themselves up to all sorts of discrimination/malpractice complaints. How do you think it would look that some mortgage advisor in the bank declines a loan offer because they have made a professional judgement based on medical evidence...
The only material facts are financials, income, insurance and employment status related.
Brendan Burgess
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So the age of acting in good faith is over?
Of course the bank wants to know if a person's earning potential is at risk.
Of course the bank wants to know if a person's earning potential is at risk.