Can a person with a new job get a home loan?

Any general questions you might have in regards to loans and finance.
Braithwater
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Joined: Tue May 29, 2018 2:45 pm

Can a person with a new job get a home loan?

Postby Braithwater » Mon Dec 24, 2018 3:33 pm

I recently started a new job which pays quite well. I've been in the same industry for the past four years. I am thinking about buying a house and applying for a home loan. I have a good deposit (around $45,000) and I'm looking to buy a property in the range of $500,000.

I just wanted to know if there is a chance of me getting a home loan or not. I heard from a couple of people that starting a new job can lower the chances of a home loan. Is this true?

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Otto Dargan
Mortgage Specialist
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Re: Can a person with a new job get a home loan?

Postby Otto Dargan » Mon Dec 24, 2018 4:42 pm

Hi Braithwater,

Most lenders usually require the applicant to be in their current employment for a minimum of six months before considering their home loan application.

Fortunately, not all lenders think the same way. There are a couple of lenders who’ll consider home loans for new employees even if they’re just one day in the job.

Depending on the industry you work in, your previous employment history and the strength of your financial position, you may be able to borrow up to 95% of the property value.

To find out whether or not you qualify, you can use the probation calculator. However, please note that this calculator is a guide only and shouldn't substitute speaking to a qualified mortgage broker.

From your details, you may have a good chance of getting approved for a home loan even if you’re on probation since you have close to a 10% deposit.

If you've saved the deposit yourself with genuine savings, even better!

We have specialist mortgage brokers that are experts in short-term employment and probation.

Please give us a call on 1300 889 743 and ask one of our mortgage brokers to help you get your mortgage approved!

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Braithwater
Posts: 9
Joined: Tue May 29, 2018 2:45 pm

Re: Can a person with a new job get a home loan?

Postby Braithwater » Mon Dec 24, 2018 5:29 pm

OK, it’s a comfort to know. Moreover, can you tell me a bit about genuine savings; how much of it is required for a home loan? I received most of my savings from my previous employer as a bonus.

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Otto Dargan
Mortgage Specialist
Posts: 7484
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can a person with a new job get a home loan?

Postby Otto Dargan » Mon Dec 24, 2018 6:22 pm

Hi Braithwater,

It’s complicated to say in black and white what is and isn’t considered to be genuine savings. In addition to this, each lender has their own genuine savings policies but almost all lenders require at least 5% genuine savings.

If the bonus has been kept in your savings account, then it’ll be considered as genuine savings by some lenders. Check out our ultimate guide on bonus income as a deposit.

The following are examples of what most banks find acceptable when determining whether you have genuine savings or not:
  • Savings held for over three months.
  • A term deposit.
  • Shares or managed funds.
The following types of savings are considered to be genuine savings if they add up to be more than 5% of the purchase price:
  • Equity in real estate (varies depending on the lender).
  • If you’ve been renting for the last 3 months, then you may be able to use non-genuine savings as a deposit, such as a gift from your parents.
  • Even salary sacrificing under the First Home Super Saver Scheme can be acceptable, despite how minimal the benefits are from the FHSSS scheme.
You can use our genuine savings calculator to find out how much you need to prove in genuine savings.

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 short-term employment or those are earning an unusual income structure like bonuses.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Braithwater
Posts: 9
Joined: Tue May 29, 2018 2:45 pm

Re: Can a person with a new job get a home loan?

Postby Braithwater » Mon Dec 24, 2018 7:25 pm

Hey Otto, your replies have all been straightforward and specific. Thanks for that. I’ll complete your form for now and will give you guys a call by next week.


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