You CAN get a home loan while on probation!
Have you just started a new job? Chances are you're now getting a decent salary and can afford to buy that house down the road that's going to auction in a few weeks. But there's a problem! Your bank has told you that you'll have to wait until you are no longer on a probationary period before you can get a loan!
It doesn't make sense right? You're a professional in high demand and you're now earning a great salary in stable employment. Shouldn't the banks be throwing money at someone with your career? Not all banks think the same way about people on probation. Read on to find out why they don't like short term employment...
- What do lenders think?
- Which lenders can help?
- Which loan types are available?
- How much can I borrow?
- What can I use the loan for?
- Who this loan is for?
- Who this loan is not for?
- Discounts
- Loan features
- Notes
What do lenders think?
From a bank's point of view lending money is a careful balance between risk and return. Most lenders will look at borrowers on a probationary period and just see the additional risk that they might have their employment terminated at any time! Other lenders know that if someone has a track record of experience in the same line of work or who have studied that field at university have a high chance of keeping their job or getting another job anyway! Because of this mentality some lenders choose to approve your loan whilst others will show you the door.
Which lenders can help?
For this type of situation banks are more helpful then securitised non-bank lenders. Non conforming non-bank lenders may also be able to help. Talk to us to see which banks have the best finance deals for home loans while on probation.
Which loan types are available?
All loan types: Professional packages, basic loans, lines of credit, fixed rates.
How much can I borrow?
You can borrow up to 100% of the property value.
What can I use the loan for?
Home / domestic use, investing, purchases, refinances and construction are all acceptable loan purposes.
Who this loan is for?
Professionals with a stable employment or study record in the same industry or line of work as their new job. You may have just started your job or already have one or two months in your job. As long as your situation "makes sense" then we can usually find a mortgage lender for you.
Who this loan is not for?
Self employed and low doc borrowers will have difficultly borrowing money if they have just started in a new job or business. Low doc borrowers applying for less than 60% of the property value can still obtain a loan.
Discounts
Professional package and basic loan discounts are available. In most cases you will pay the same interest rate on your finance as somebody who has finished their probationary period.
Loan features
All loan features: Interest only, fixed rate, line of credit, 100% offset, redraw, extra repayments.
Notes / Apply for a loan
We only recommend that you apply for a home or investment loan while on probation if you believe your employment is stable. If you believe that your employer may terminate your employment during your trial period then obviously it is not in your best interests to risk applying for a home loan.
Talk to us to obtain a quote from a lender for a home loan while you are on probation.
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