Can I get a Home Loan while on Probation?
Probation home loans are required as it is now more common within many public and private employment sectors for new Employees to be on a Probation Period. It allows your employer to review your performance within a company before rewarding you with a full time position. Equally, you can also assess whether or not you like your new job before making a commitment under contract. There are many advantageous aspects of a probationary period; however there are detriments. Because your future employment prospects are not qualified and you do not have employment stability your financial security is in doubt. This is why lenders are often reluctant to approve the loans of those who are subject to a probationary period. But, what if you find that dream home you have always wanted and wish to finance it?
Probation Home Loans
A non conforming mortgage broker is the most suitable person to assist you in formulating your application to ensure that you can get a home loan while on probation. Banks take into account a variety of factors when assessing risk. Inclusive, is your current employment situation. Mortgage brokers know what is required to make sure you get approved!
Typically, lenders prefer those that have changed jobs and are moving departments, but are still working in the same field. They like to see professionalism and a strong employment history and clear credit. Although, this can be difficult for those who just entered the workforce or are re-entering the workforce after having taken leave.
Students who have just graduated for university commonly face issues when seeking approval for a mortgage. This is often attributed to their lack of experience and short employment history. However, lenders will take students studies into consideration. Those that have secured work within their relative fields and have studied for a period greater than two years, generally have a higher chance of approval. Equally, those who have migrated to Australia or are Employer Sponsored Visas can get also get approved for a home loan where it is demonstrated that they have a secure salary and are resuming their employment in Australia in a similar field.
Despite being under probationary period, you can still get approved! Lenders may offer attractive rates and fees and a variety of loan features, including the ability to redraw and make extra repayments. It is advisable that extra repayments are made, when possible, to reduce your risk of defaulting. Further, it may be necessary to discuss an early review with your employer during your probationary period before seeking a loan. This will allow you to determine whether you will have future financial stability and thus the ability to repay the loan, should it get approved.
There is no redundancy pay out for those that are under a probationary period so it is essential that your finances are in a strong position before you commit yourself to a loan whilst still under a probation period. If the probationary period is 3 months, it is generally advisable to wait until your employment status is confirmed within a company.
It’s imperative to your ability to get approved for a probation home loan, that you contact the right mortgage broker. Many have assessed the applications of various individuals who are undergoing a probationary period, and therefore have the experience to ensure you get approval.