Probationary periods: Can I still get a home loan?

June 27th, 2010 1 Comment
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Woman just starting her new jobYou just scored that new job, changed careers for more stimulating work opportunities or have been head hunted due to your professionalism and strong work ethic. Despite all the excitement that comes with changing jobs, you could be subject to a probationary period. Often the length of probation is written in your employment contract. It could be three to six months, sometimes longer!

During this time you may wish to finance the purchase of a new home. But what if you can’t get approval! Some banks are less inclined to lend to those on probation, due to the higher risk involved. You may be a working professional with lengthy experience within your industry and your salary may have increased substantially, so why should a probationary period stop you from buying that dream home? The right broker will ensure that you are approved!

Generally banks are more inclined to lend to those once the probationary period is over. This is because they see a probationary period as a reflection of your unstable employment situation. Lenders prefer those who have full time employment and not those that are still unsure as to whether they will secure a permanent place within a company.

Your chances of approval are higher if you are changing departments or jobs, within the same field or industry. Lenders want to see opportunistic people with a good track record of employment. Not those that tend to move from job to job. These are all factors that banks take into consideration when assessing your application for a home loan, while you are on probation.

For those of you who are yet to commence work, have just finished university and are looking to enter into the workforce, there is still a high chance of approval if you are moving into the same field that you studied in. Your situation will be more favourable if you have studied for over two years and can evidence this.

This is similar for those of you who may have recently taken maternity leave and wish to return to work. Generally this will not be a problem if you are returning to the same employer, however banks will often request a copy of your child’s birth certificate so that they can prove that this is the reason that you have been absent from the workforce.

Have you recently moved to Australia from overseas? Are you a returning ex pat? You can still get approval! If you are on an Employer Sponsored Visa, or are an Australian resident or citizen who is returning to work in the same field that you worked in overseas, you may still qualify for a loan.

Expert help is necessary to ensure approval. Brokers usually deal with many people who face similar employment situations to you. It is not uncommon for them to successfully approve those who are on probationary periods or have just started work. Get in touch with a mortgage broker today!

One Comment

  1. Shalesh says:


    I started a new job on 07/02/11 & need a pre-approval to buy land to build house on.
    I have significant genuine savings & equity in an investment property.

    My probation is 3 months which will finish before land settlement date.

    Pls advise if I am able to get a pre-approval.



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