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Is the income from my new job accepted?

Posted: Fri Sep 27, 2019 7:12 pm
by Ben W
The company I am working for is moving to another state. Unfortunately, I could not move with the company due to a family obligation. I had to quit my full-time job as a sales rep and I am on probation on a new job. I was already thinking of buying a home and I have money saved up. Will the lender accept income from my new job when applying for a loan?

Re: Is the income from my new job accepted?

Posted: Fri Sep 27, 2019 7:32 pm
by Otto Dargan
Hello Ben.

Thank you for reaching out to us and welcome to the forums.

Yes, even with a new job, we can find lenders that will accept income from it. However, before moving forward with getting a home loan make sure to:
  • Check your employment contract to make sure your employment is subject to probation.
  • Understand the length of your probation, usually, it is between 3 months, 6 months or even 12 months.
We have lenders that can let you borrow up to 95% loan to value ratio, but this is looked into on a case by case basis.

Most lenders are favourable towards applicants if:
  • The new job is in the same industry
  • Stable employment history
  • Continuous employment in the same industry.
The best way to get approved is to find a lender that will assess your income as true and correct and views your situation in a favourable light.

Give us a call on 1300 889 743 or fill in our free assessment form and our award-winning mortgage brokers could get you the best deal on your home loan.

Cheers,

Re: Is the income from my new job accepted?

Posted: Fri Sep 27, 2019 7:36 pm
by Ben W
Great, thanks for the info. Borrowing 95%? Is there any catch to this?

Re: Is the income from my new job accepted?

Posted: Fri Sep 27, 2019 8:01 pm
by Otto Dargan
Hi Ben,

Besides earning a regular income and having stable employment, you will also need a deposit of at least 10% of the property value.
If this is your first home, the deposit amount can even include the first home owners grant (FHOG).

The major catch here is that you will need to pay Lenders Mortgage Insurance (LMI) if you plan to borrow over 95% of the property value.

Please use the LMI calculator to get an estimation on how much you'll need to pay.

Cheers,

Re: Is the income from my new job accepted?

Posted: Fri Sep 27, 2019 8:15 pm
by Ben W
I just used the LMI calculator, and there are many lenders that are offering good premium amounts and also capitalise LMI. What does capitalise LMI mean?

Re: Is the income from my new job accepted?

Posted: Fri Sep 27, 2019 8:26 pm
by Otto Dargan
Hi Ben,

LMI capitalisation is the process by which the LMI premium is added on top of your loan. This is also known as “capping the LMI premium” or having capped LMI.

By capping your LMI premium, you will need a smaller deposit since you are not paying the LMI premium upfront, from the money that you have saved!

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,