Many people believe that you have to be in a job for at least three months before applying for a loan. This is a common misconception.
Some lenders do have strict criteria about the length of time you need to be in a job. Others are a little more flexible and don’t have hard and fast rules. Whereas some need you to be there for a full year.
The key is that lenders want to see that you will have a consistent income going forward. In some cases they want proof that your income has been consistent and regular for a certain amount of time.
In other cases they will look at your scenario, and consider your overall experience.
Some lenders are happy to accept shorter terms of employment. In certain cases, lenders will accept as little as one day. When doing so they would like you to show that you have been in the same industry for a period of time. It would be logical to expect income to continue if you have been in the same industry for more than two years.
If you recently started a new job, but were in your previous role for a long period of time this is less likely to be an issue. This definitely works in your favour compared to someone who often changes jobs.
Changing employment for a better deal is not the issue for lenders. It’s when there’s evidence that your employment is unstable that gives cause for concern.
If you are working consistent hours, it is quite easy for a lender to work out what your future income will be.
If you are employed as a casual, or your hours vary each week, this can be a little harder. Lenders may want to see that you have been employed for a longer period of time to better calculate your income.
This would also apply if you were reliant on overtime hours, commissions and/or allowances.
Many lenders will still lend to you while you are serving a probationary period. You just need to show that you have had experience in the industry.
Not being on probation does open up more lenders available to you. But it does not rule you out from getting a loan, even if you have a smaller deposit.
It is also important to consider your own comfort levels and not just the bank when you are on probation. If you apply while on probation, you should be confident in your employment continuing. If the probationary period was not going to work out, you would need to be confident of finding another job.
If you are looking for a home loan and have only been employed for a short time, it does not mean that we cannot help you. If one bank has said no, we can help you find a lender who will say yes.