As a result, many lenders will ask you to wait until you’re through your probation period, or have been in the role for at least six months before you apply for a mortgage.
But there are some exceptions – and you may still be able to access a product with a mainstream lender if your application is strong enough.
Generally when you apply for a home loan, you will need to provide details of your income, assets, and liabilities alongside your personal information.
So you may have your loan application approved while on probation if your financial position is particularly strong. For example you may have:
Likewise if you have a stable employment history – experience gained over many years in a particular field – lenders are more likely to make an exception to their lending criteria and approve a Probation Home Loan.
Get started This is because it is likely you will keep your new job, and your experience is marketable. As a general rule, lenders prefer people who work in industries where there is ongoing demand for workers.
It’s not impossible to access a Probation Home Loan if you have a weaker financial position, work in a different industry, or if you are a first-time jobber.
However your choice of lender may be restricted, and this could mean a less competitive product is available to you until you complete your probation period.
It’s worth remembering that probationary periods are useful for the employee as well as the employer. You too can terminate the contract at any point during the probationary period should the role or work environment not meet expectations. Therefore it’s important you’re sure of your work situation before taking on the risk of borrowing money.
When applying for a home loan, you’ll also need to meet all other lending criteria. For example, a bad credit record could prevent you from getting a probationary home loan, even if you earn a lot of money at your new job.
Therefore it’s important to pay off your debts, ensure your credit file is clean, and get your paperwork in order before applying for a mortgage.
Being on probation doesn’t mean you can’t access home loan products; you just need to find the right lenders. Make sure you follow these steps to prepare yourself for making your application: