Upon changing jobs or making a career change to a new industry it is common to be subject to a probationary period. This will generally last for 3 to 6 months, for those working in non-governmental sectors.

In the public sector it is common for new employees to be on a mandatory six month probation period.

You may have recently changed jobs to a new job or may have been ‘head hunted’ by a recruiter for a corporation due to your professional status and extensive experience within your industry.

Switching jobs means adapting to a new working environment. Equally, many people discover upon securing a new job that they must undergo a probationary period. This can be a detrimental factor when applying for a home loan

Through the lenders eyes – how do they view probation?

If you have just changed jobs, are in the process of switching or are under a probationary period, most lenders may be reluctant to lend.

If you are switching to a new employer it is often difficult to get approval. Banks are do not look favourably on those that have only be employed for a short period.

Lenders try and manage their risk by imposing a variety of conditions and requirements that need to be met before approval is granted. Those working in probation, risk having their employment terminated with little notice. Their income is not secure for the future.

The banks see lack of job security as a potential future inability to make loan repayments. This can prevent people from getting their home loan approved, or often, when they get approval the interest fees and rates are high. Those switching to a new employer are in a similar situation and banks may not grant approval.

How we can get you approval!

We can assist you in getting approval for a loan with some banks if the probationary period is between 6-12 months and there is proof that you are experienced within your industry. You are then entitled to borrow up to 90% of the purchase price.

Our lenders prefer to lend to people whose previous job was similar to or in the same industry as their new job.

Please enquire online to discuss your situation with one of our expert mortgage brokers.

What if I’ve only been on the job for a day?

One of our specialist mortgage brokers can help you find a lender that will grant approval regardless of your short term employment status. This includes those that are under a 3, 6 or 12 month probationary period, who have been in their current job as little as a few days.

Contact the experts to find out which lenders can help you get approval fast!