What is a probation home loan?
- A probation home loan is a facility allowing you to take out a loan during your probationary period in a new job or career.
- This period generally lasts between 3 to 12 months depending on the employer.
- A probation home loan is not a different product which lenders offer, but rather a policy exception which lenders allow.
- It is a normal type of loan, but is viewed flexibly by the assessor due to your new employment position.
Can I get a loan if I have just started a new job?
- Most lenders are usually unable to offer finance to individuals who have been in their employment for less than 6 months.
- There may be exceptions where you can show that; the job is permanent (not casual) and/or there is continuity of industry. Lenders want to see that either the job is certain (and not just temporary) or that you have experience within the industry to indicate that the job is reliable.
No, you will not require genuine savings for a probation home loan.
The interest rate for a Probation Home Loan is the same as a normal type of loan and there is generally no additional cost for a Probation Home Loan.
If you have just started a job then straight out of University you have short term employment history. Chances are you will most likely be employed under a probation period with your first employer. We can still help you even if you have 1 day employment or a valid work contract.
Disadvantages of applying for a Probation Home Loan?
The main disadvantage of applying for a probation home loan is that not all lenders will accept your application whilst you are on probation. Therefore, your pool of lenders is reduced. Short term employment can lead you to fail a credit score, thus reducing your ability to obtain credit. This further limits your lender options.
What lenders are available to me?
Not all banks require this employment term requirement and some take a more lenient approach when considering applicants in new jobs. Your financial position will play a big role in this decision. Those who are in a stronger financial position will be viewed more favorably by lenders.
How much will I be able to borrow?
- You can usually borrow 90% and even up to 95% of the value of the property depending on the strength of your financial position.
- If you are in the process of changing of jobs it may be difficult to get a loan approved, however there are some lenders that may consider using your new income even before you have started your new job.
- Most lenders will not be willing to consider your new job if it is believed that you were fired whilst on probation in your previous role.
- Lenders will often require that you commence the new job prior to issuing formal loan approval.
Mortgage Providers are experts in this field and can help you with achieving your dreams of purchasing or just saving you money on your home loan. Contact one of our experts today to see how we can help you