Do banks lend to people who've only recently started working again?

Any general questions you might have in regards to loans and finance.
Monica C
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Joined: Tue May 14, 2019 2:17 pm

Do banks lend to people who've only recently started working again?

Postby Monica C » Tue May 14, 2019 2:18 pm

I’ve only recently started a new job after taking a year off to take care of our baby boy. I’m re-entering the workforce and we’re looking to buy a house. My husband works full time and earns roughly 70k p.a. before tax, and my income will be 45k p.a. with my current hours. I read somewhere that banks don’t lend to people who’ve worked for less than 6 months with the same employer. Is that true? Does this mean we have to wait?

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Otto Dargan
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Re: Do banks lend to people who've only recently started working again?

Postby Otto Dargan » Tue May 14, 2019 3:01 pm

Hello Monica C. Welcome to the forums and congratulations on the baby boy.

While it’s true that most lenders are reluctant to lend to people who’ve been working for less than 6 months, not all lenders have this policy. One of our lenders even allows you to borrow up to 95% of the value of the property even if you’ve just started a new job.

To qualify for a new job home loan:
  • You need to show prior employment stability.
  • You’re borrowing up to 90% of the value of the property, you can borrow up to 95% if you’re in a strong financial position.
  • You have a minimum of 5% in genuine savings.
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,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Monica C
Posts: 3
Joined: Tue May 14, 2019 2:17 pm

Re: Do banks lend to people who've only recently started working again?

Postby Monica C » Tue May 14, 2019 4:10 pm

We want to start doing our research on possible properties we can afford. Based on our income stated above, what’s the maximum amount we can borrow? We have two credit cards between us with a $2000 balance ($10,000 limit) and a monthly car payment of $400 ($12,000 remaining). No other debts.

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Otto Dargan
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Re: Do banks lend to people who've only recently started working again?

Postby Otto Dargan » Tue May 14, 2019 5:13 pm

Hi Monica C,

Using our borrowing power calculator the maximum amount you can borrow is $646,742. This is a tentative figure calculated by choosing the right lender and amending your loan structure.

Your borrowing power will depend on the lender you qualify with, your income, family size, location, current debts, your deposit and the type of mortgage you choose.

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

Monica C
Posts: 3
Joined: Tue May 14, 2019 2:17 pm

Re: Do banks lend to people who've only recently started working again?

Postby Monica C » Tue May 14, 2019 6:11 pm

My husband owned a property previously as such we don’t qualify for first home owners benefits. We were gifted $20,000 by my parents, we were planning to use that along with our own savings of $25,000 as the deposit and to cover any miscellaneous costs. Let’s say we’re looking to purchase a $45k property what would be the total fees such as stamp duty, mortgage fees, legal fees etc?

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Otto Dargan
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Re: Do banks lend to people who've only recently started working again?

Postby Otto Dargan » Tue May 14, 2019 6:44 pm

Hi Monica C,

A gifted deposit from your parents or in-laws is acceptable to some of our lenders. You may need to provide a signed gift letter stating that it is an unconditional gift and not a loan.

When you buy a property, you can expect to spend up to 5% of the purchase price on fees, duties and charges. So for a purchase of a $550,000, there may be up to $27,500 of costs involved in order to close the deal. You can use our property purchase costs calculator to get an estimate of the costs of buying a home. The stamp duty levied by your state government is the largest expense when purchasing a property.

Generally, if you’re borrowing over 80% of the property value, Lenders Mortgage Insurance (LMI) applies. Please use our LMI calculator to get a quote. The LMI can be added on top of your home loan (capitalisation) with some of our lenders.

Give us a call on 1300 889 743 or fill in our free assessment form and one of our mortgage brokers will help you find the cheapest LMI from our panel of 40 lenders.

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


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