Is your employment situation stable?

Starting a new job, changing careers or working in probation are all examples of when one might not have current employment stability or the necessary experience to qualify for a home loan.

Some lenders have strict criteria and employment stability is an important factor that the banks take into consideration when approving your loan.
If you are working under a probationary period there is a chance that your employment could be terminated at any time.

It is commonly accepted in most industries with probationary periods, that no redundancy payment is made. Therefore, should your employment be terminated during the probationary period, you could be out of a job with no continuing flow of income.

How do the banks view your situation?

Due to your indeterminable period of employment or inability to gauge whether permanent employment will arise out of the probationary period, the banks see you as a higher risk

Because you are under probation and your role within the company as a full time employee is not definite, most banks are reluctant to lend.

Some banks will lend regardless of probation and will still offer competitive rates. Banks like to see ‘opportunistic’ people taking advantage of better employment offers.

Banks don’t like to see:

• People who change jobs regularly
• People with unexplained gaps in their employment history
• People moving into completely different industries, e.g. doctor to plumber

Contact one of our specialist mortgage brokers to find out which lender is right for your situation.