On probation home loan
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 will have to wait until you are no longer in a probationary period before you can get a loan!
However, not all banks think the same way about people who are on probation. Read on to find out more.
- What do lenders think?
- How long do I need to be in my job?
- What if I’ve only been in my job for a day?
- Which lenders can help?
- How much can I borrow?
- Interest rate discounts
- Tips for people on probation
- Apply for a loan while on probation
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 in their field at university have a high chance of keeping their job or getting another job anyway.
If you are on a probationary period and want to know if your situation will be an impediment to getting a mortgage, enquire online or contact us on 1300 889 743.
How long do I need to be in my job?
Whilst most lenders require that you be working in your job for 6 months or more, we know several other lenders that can assist if you have been in your job for at least a month.
If you are looking for a competitive loan package and want to ensure that interest rates are not increased due to your current employment status, enquire online or contact us on 1300 889 743 to speak to a mortgage broker who can help you get approved!
What if I’ve only been in my job for a day?
One of the banks we work with can accept people who have been in their job for just one day! If you have not yet started your new job then your loan may be approved subject to you providing an employment letter once you have completed your first day.
Which lenders can help?
For this type of situation it is possible to get approval from a reputable lender with a competitive interest rate. Our preference is always to help you get a mortgage from a major lender rather than a “lender of last resort”. In most cases we would only need to apply with a specialist or non-conforming lender if there is another concern regarding your application.
Please enquire online or call us on 1300 889 743 to speak to a mortgage broker who specialises in finding home loans for people who are on probation. You’ll be surprised to find out that most people qualify for a discounted interest rate or professional package.
How much can I borrow?
We can help you obtain a 95% mortgage as long as you meet all other standard bank criteria including having a clear credit history. If you are borrowing over 90% of the property value then the lender may ask more questions or ask for additional supporting documents before issuing your approval.
If you believe that you may be unable to provide certain documents, please call us on 1300 889 743 or enquire online and our expert mortgage brokers will assist you in applying for a loan.
What can I use the loan for?
Home / domestic use, investing, purchases, refinances and constructions are all acceptable loan purposes. Some other loan purposes such as debt consolidation are acceptable on a case by case basis.
Who is this loan for?
Professionals with a stable employment or study record in the same industry or line of work as their current 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. Please enquire online or call us on 1300 889 743 to discuss your circumstances with us.
What professions are favoured by lenders?
Major banks and other lenders prefer teachers, nurses, mining industry professionals and any other line of work that is in high demand. But what if you are a blue collar worker? In most cases you can still qualify for a mortgage. Please call us on 1300 889 743 or enquire online and our mortgage broker will discuss your options with you.
Who is this loan not for?
Self employed and low doc borrowers will have difficultly borrowing money if they have just started in a new business. Low doc borrowers applying for less than 60% of the property value can still obtain a loan.
Which home loan types are available?
By dealing with us, you will be opened to all available loan types including, professional packages, basic loans, lines of credit and fixed rates, even if you are still on probation.
What is a probationary period?
This is a period of time that allows both the employer and employee to see how well you suit each other before committing to full-time employment. During this time, both parties have the option of terminating the employment agreement. Your contract will identify the notice period applicable in these circumstances. Depending on the terms of employment and the sector you work in, this period may be 3, 6 or 12 months in duration.
Advantages and disadvantages
A probationary period can be advantageous for those trying out a job in a new industry. It allows you to time to decide whether the company and working environment suits your needs.
However it also has it’s negatives! It may affect your ability to get approval for a mortgage. If you believe you may have trouble qualifying, please speak to us today on 1300 889 743 or enquire online.
What do the banks think?
Most credit staff working for the banks have been in their job for well over five years and consider new staff to be very unstable. Because of this mentality most lenders will show you the door.
Luckily there are some lenders who take a common sense approach to assessing mortgage applications. To discuss your situation with an expert mortgage broker, please call us on 1300 889 743 or enquire online.
Discounts & Loan features
Professional package and basic loan discounts are available. In most cases you will pay the same interest rate on your loan as somebody who has finished their probationary period. In other words, the price of your loan is not affected.
All loan features are available for this type of loan including: Interest only, fixed rates, line of credit, 100% offset, redraw and extra repayments.
Tips for people on probation
Check your employment contract: If you aren’t sure if your employment is subject to a period of probation then please refer to your Australian Workplace Agreement (AWA), contract of employment or call your Human Resources Department to confirm your employment status.
It is common for almost all new jobs to have a 3 month or 6 month probation period, especially when you have made a career change to a new industry.
Get informed: while you are in your trial period you can expect your manager to closely monitor your work, how well you get on with your team members and if applicable, how you handle customers.
It may be a good idea to ask for a copy of your new employer’s HR policies to help you adjust to the culture at your new workplace.
Mandatory probation for government jobs
Some roles such as government jobs have a mandatory probation period which can only be waived if you are moving between departments of the same level of government.
If you work in the public sector and are subject to a probationary period, please call us on 1300 889 743 or enquire online. We know the lending guidelines of all major banks and can help you get approval.
Apply for a loan while on probation
We only recommend that you apply for a home or investment loan while on probation if you believe that 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.
Please enquire online or call us on 1300 889 743 to discuss your application.
