Can I get a home loan if I have a new job?

Any general questions you might have in regards to loans and finance.
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stace
Posts: 64
Joined: Wed Jun 24, 2009 4:48 pm

Can I get a home loan if I have a new job?

Post by stace »

Hello home loan experts!

I have finished my college and have started working for a private firm in Melbourne recently. My annual salary is $51,000 and I am paying almost $400 per week in rent. I was thinking that it would be better for me if I bought my own place instead of renting.

There is an apartment for sale close to my workplace and it is priced at $430,000. I was thinking of getting a mortgage for that, but my coworkers told me that banks may decline my loan application since I am new to my job. Is that really true? I would be grateful for any information about this.

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Otto Dargan
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Re: Can I get a home loan if I have a new job?

Post by Otto Dargan »

Hi stace,

It may be difficult for you to have your home loan approved if you have a new job. Most lenders require you to have been working in the same job for at least six months in order to consider your home loan application.

However, different lenders view people with a new job differently. Some lenders may recognise the strong financial position and the experience of borrowers even if they are in a new job. In fact, one of our best lenders for people with new jobs may approve home loans for those who have been working for just a day.

You may be able to borrow up to 90% Loan to Value Ratio (LVR), and even 95% if you are in a strong financial position. You may also be able to get discounted professional packages, basic loans, and lines of credit.

In your case, it is important to identify the lenders who view borrowers with new jobs favourably. Mortgage brokers have a good idea on the lending policies of different lenders. It would be better for you if you contact an experienced broker directly in order to choose a lender that is suitable for you.

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

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stace
Posts: 64
Joined: Wed Jun 24, 2009 4:48 pm

Re: Can I get a home loan if I have a new job?

Post by stace »

Thank you for the information. Why do banks view people with new jobs differently and give us a hard time while getting a loan? It is not like we are not able to repay the loan?

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can I get a home loan if I have a new job?

Post by Otto Dargan »

Hi stace,

Lenders give high importance to employment stability of the borrower while assessing a home loan application. They consider lending to people with a new job to be much risky. That is because there is a high chance that people with new jobs may leave their jobs, or the employment may be terminated during the probation period.

If you would like to know more about these then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.

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

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stace
Posts: 64
Joined: Wed Jun 24, 2009 4:48 pm

Re: Can I get a home loan if I have a new job?

Post by stace »

Well, that sucks. It seems that it will be more difficult for me to get a home loan than I had initially imagined. I am calling you guys right away for help in my loan application.

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bobby
Posts: 52
Joined: Wed Jun 24, 2009 11:52 am

Re: Can I get a home loan if I have a new job?

Post by bobby »

Hello everyone!

I am a part time worker working for a car rental firm in Sydney. It has been more than a year since I started working here, and I earn $28,000 per year from the job. I want to buy an apartment of my own, and I need to borrow as much as I can. However, I have heard that the lenders may not assess the full income of part time workers while assessing their home loan applications. I would be grateful if someone could provide extra information on this topic.

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can I get a home loan if I have a new job?

Post by Otto Dargan »

Welcome to the home loan forum, Bobby.

It may be more difficult for part time workers to get a home loan as compared to those with full time jobs. This is because most lenders require part time workers to be working longer than full time workers, and may also take less than your full income into account while assessing your loan application.

Therefore it is important to apply with a lender that uses a common sense approach while assessing your income. Most lenders generally accept only 50% of your part time income. However our best lender for part time employees may accept 100% of your part time income.

You may need to provide your two most recent payslips as evidence of your income, or two years of group certificates if you have been working for more than three years. Some lenders may ask for your tax returns as proof of your income since different lenders have different requirements on what they consider to be evidence of your income.

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

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bobby
Posts: 52
Joined: Wed Jun 24, 2009 11:52 am

Re: Can I get a home loan if I have a new job?

Post by bobby »

Thank you for the info, Otto. I will contact you later this week to discuss the options available to me.

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