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Can I still qualify for a home loan if I've just started a new job?

Posted: Mon Feb 11, 2019 11:41 am
by Yedda
Hi, I recently completed my six-month probation as a marketing and communication exec and got the permanent position, bumping my pay to 55K p.a. I’ve wanted to own a house for quite a long time and saved up some deposit money. But, I’ve been told banks often look at employment history before approving a home loan. Can I still qualify for a home loan if I’ve just started a new job?

Re: Can I still qualify for a home loan if I've just started a new job?

Posted: Mon Feb 11, 2019 1:09 pm
by Otto Dargan
Hello Yedda. Welcome to the forums.

You may still be able to qualify for a home loan even if you’ve recently started a new job, but you need to meet specific criteria and choose the right lender.

Most lenders require you to be working in your current position for a minimum of six months to 12 months to able to borrow up to 80% of the property value.

One of our lenders will allow you to borrow up to 95% of the property value even if you’ve only recently started in a new job.

What will really help your case is that your past the probationary period.

Use our New Job Home Loan Calculator to find out if we can help you get approved.

To find out which lenders will approve your application, speak with one of our experienced mortgage brokers.

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

Cheers,

Re: Can I still qualify for a home loan if I've just started a new job?

Posted: Mon Feb 11, 2019 3:22 pm
by Yedda
Awesome. Now the property I’m currently looking at is valued around $500,000. As I have saved up around $60,000 which I’m planning to use as the deposit and cover any other costs involved. Do I qualify for a 90% home loan?

Re: Can I still qualify for a home loan if I've just started a new job?

Posted: Mon Feb 11, 2019 5:35 pm
by Otto Dargan
Hi Yedda,

Great job on the deposit, you’re on the right path.

For a 90% home loan, each lender has their own set of lending guidelines that they use to assess an application.

You already appear to have stable employment so if you can meet the following requirements, you'll be in a good position to qualify:
  • Credit history: You need a clear credit file but some minor paid utility defaults are accepted as long as other areas of your application are strong.
  • Other debts: You must be making regular on-time payments for any personal liabilities such as credit cards, car loans or personal loans.
  • Income: Your serviceability or ability to make your repayments must be strong.
  • Genuine savings: Saving your own deposit is a good sign that you'll be a reliable borrower.
Cheers,

Re: Can I still qualify for a home loan if I've just started a new job?

Posted: Mon Feb 11, 2019 6:53 pm
by Yedda
I have around 6k in credit card debt spread over a few cards and about 4k left in a car loan, which I want to consolidate with the home loan. Can I consolidate my personal loans into the home loan?

Re: Can I still qualify for a home loan if I've just started a new job?

Posted: Tue Feb 12, 2019 4:07 pm
by Otto Dargan
Hi, Yedda

While it’s certainly possible to consolidate your personal loans into your home loan, it will bring the Loan to Value Ratio (LVR) to 90% of the property value which only a handful of lenders will approve.

90% is the maximum LVR accepted by a select few lenders. The only exception is with a guarantor home loan.
With a guarantor, you can consolidate up to 5% of the property value to borrow up to a maximum of 110% of the property value.

To find out which lenders will approve your application, speak with one of our experienced mortgage brokers.

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

Cheers,