Last Updated: 4th June, 2021

Can I get a home loan if I’m unemployed?

Your employment status will affect your home loan application.

Unfortunately, if you’re currently unemployed, lenders might view you as a risky borrower.

You must be in your job to get approved for a home loan.

Luckily, we know lenders on our panel who might be able to help if you’re on probation or just started on a new job.

What if I just started a new job?

There are a handful of lenders who can help if you’ve just started your job.

If you’re starting your job in a similar industry, then this is considered favourable by lenders.

However, lenders recognize even if the employment is short term, you could be in a strong financial position with industry experience.

You have to provide evidence that you’ve started a new job like an employment contract if a payslip is not available.

You can use our new job loan calculator to find out if you’ll be approved.

Can I get a home loan while on probation at work?

Yes, there are a few lenders who will accept even if you’re on probation.

You have to ensure that your job is secure when applying for a home loan during probation.

The minimum probationary period accepted by most lenders is between 3 months to 6 months.

However, if you’ve been working in the same industry or the same line of work for at least 2 years, then it is also accepted.

We know the right lenders who can seek an exception depending on your work history.

Learn more about how you can apply for a home loan during your probationary period.

What if I was unemployed due to COVID-19?

If you were made redundant or terminated due to COVID-19 and can provide evidence that you’ve started working at a new job, then this is seen as favourable to lenders.

Lenders will perform an employment check to ensure that your job is stable.

Some lenders might not accept a new job if you’re working in an industry or profession that is severely affected by the COVID-19 pandemic:

  • Tourism
  • Hospitality
  • Sports and recreation
  • Retail and consumer products, etc.

Lenders will also accept if you’re returning to work after being on maternity leave or extended holidays.

As long as you’re currently employed, lenders will accept a genuine explanation for the unemployment.

What if I’m only working on a temporary basis?

There are lenders who will accept your home loan application if you’re working on a temporary basis, provided you have a strong work history.

A majority of lenders will require 12-month employment history, but we know a lender who will accept a 3-month employment history as well.

Lenders might accept a short-term employment history if you’re in a strong financial position and have a long work history.

Learn more on how you can get approved when you’re working on a temporary basis.

What if I’m a casual employee?

Most lenders require casual employees to be in their jobs for at least 12 months.

However, we know lenders who might accept between 3 months to 6 months in a job, especially if you’re in a sought after industry like IT, health, education, etc.

Learn more about how you can get approved for a home loan as a casual employee.

How to get approved for a home loan after unemployment

  • Provide documents that you’re currently employed like your recent payslips or employment contract.
  • Try to save for a larger deposit of at least 20% of the property value so you do not have to pay Lenders Mortgage Insurance.
  • Ensure you have savings to cover repayments for at least 3 to 6 months.
  • Provide adequate reason for the change in the job. Most lenders are unlikely to approve if you’ve been terminated from the previous job without acceptable reasons.
  • Try to keep your credit file clear of any blemishes like missed payments, late payments, etc. to demonstrate that you’re a responsible borrower.
  • If possible, try to find work in the same industry or if you’re in a new industry, that you’re using the same skills in your new job.
  • As long as your income can be proven, we know lenders who can assist you.

Our expert mortgage brokers understand the policies of over 40 lenders and will help you apply with the right lender who will accept your unique employment status.

Call us on 1300 889 743 or fill in our free assessment form.